QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | o | x | Emerging Growth Company | ||||||||||||||||||||
Non-accelerated Filer | o | Smaller Reporting Company |
2014 Plan | 2014 Restricted Stock Plan | ||||
2022 Annual Report | Corporation's Annual Report on Form 10-K for the year ended December 31, 2022 | ||||
2023 Plan | 2023 Stock Incentive Plan | ||||
ACL | Allowance for Credit Losses | ||||
AFS | Available for Sale | ||||
AOCI | Accumulated Other Comprehensive Income | ||||
ASC | Accounting Standards Codification | ||||
ASU | Accounting Standards Update | ||||
the Bank | Mid Penn Bank | ||||
Bank Merger | Merger of Brunswick Bank with and into Mid Penn Bank | ||||
BOLI | Bank Owned Life Insurance | ||||
bp or bps | basis point(s) | ||||
Brunswick | Brunswick Bancorp | ||||
Brunswick Acquisition | Merger acquisition of Brunswick | ||||
Brunswick Bank | Brunswick Bank & Trust Company | ||||
CECL | Current Expected Credit Losses | ||||
DCF | Discounted Cash Flow | ||||
DRIP | Dividend Reinvestment Plan | ||||
FASB | Financial Accounting Standards Board | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FHLB | Federal Home Loan Bank of Pittsburgh | ||||
FICO | the Financing Corporation | ||||
FOMC | Federal Open Market Committee | ||||
FTE | Fully taxable-equivalent | ||||
HFS | Held for Sale | ||||
HTM | Held to Maturity | ||||
LDA | Loss Driver Analysis | ||||
LGD | Loss Given Default | ||||
LIHTC | Low-Income Housing Tax Credits | ||||
Loans | Loans, net of unearned interest | ||||
Management Discussion | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||
Merger | Merger of Brunswick with and into Mid Penn | ||||
Merger Agreement | Agreement and Plan of Merger between Mid Penn and Brunswick | ||||
Mid Penn or the Corporation | Mid Penn Bancorp, Inc. | ||||
N/M | Not meaningful - (percentage changes greater than +/- 150% not considered meaningful) | ||||
OBS | Off-Balance Sheet | ||||
OCI | Other Comprehensive Income | ||||
OTTI | Other-than-temporary impairment | ||||
PCD | Purchased Credit Deteriorated | ||||
PCL | Provision for Credit Losses - Loans | ||||
PD | Probability of Default | ||||
PDR | Periodic default rate | ||||
Riverview | Riverview Financial Corporation | ||||
Riverview Acquisition | Merger acquisition of Riverview | ||||
ROA | Return on Assets | ||||
ROE | Return on Equity | ||||
SBA | Small Business Association | ||||
SEC | Securities Exchange Commission | ||||
SOFR | Secured Overnight Financing Rate | ||||
SRC | Smaller Reporting Companies | ||||
WSJP | Wall Street Journal Prime |
(In thousands, except per share data) | June 30, 2023 | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing balances with other financial institutions | |||||||||||
Federal funds sold | |||||||||||
Total cash and cash equivalents | |||||||||||
Investment securities: | |||||||||||
HTM, at amortized cost (fair value $ | |||||||||||
AFS, at fair value | |||||||||||
Equity securities available for sale, at fair value | |||||||||||
Loans held for sale, at fair value | |||||||||||
Loans, net of unearned interest | |||||||||||
Less: ACL - Loans | ( | ( | |||||||||
Net loans | |||||||||||
Premises and equipment, net | |||||||||||
Operating lease right of use asset | |||||||||||
Finance lease right of use asset | |||||||||||
Cash surrender value of life insurance | |||||||||||
Restricted investment in bank stocks | |||||||||||
Accrued interest receivable | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Core deposit and other intangibles, net | |||||||||||
Foreclosed assets held for sale | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | $ | |||||||||
Interest-bearing transaction accounts | |||||||||||
Time | |||||||||||
Total Deposits | |||||||||||
Short-term borrowings | |||||||||||
Long-term debt | |||||||||||
Subordinated debt | |||||||||||
Operating lease liability | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total Liabilities | |||||||||||
Shareholders' Equity: | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders' Equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | |||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Tax-exempt | |||||||||||||||||||||||
Other interest-bearing balances | |||||||||||||||||||||||
Federal funds sold | |||||||||||||||||||||||
Total Interest Income | |||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||
Long-term and subordinated debt | |||||||||||||||||||||||
Total Interest Expense | |||||||||||||||||||||||
Net Interest Income | |||||||||||||||||||||||
Provision for credit losses - loans | |||||||||||||||||||||||
Net Interest Income After Provision for Credit Losses - Loans | |||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Fiduciary and wealth management | |||||||||||||||||||||||
ATM debit card interchange | |||||||||||||||||||||||
Service charges on deposits | |||||||||||||||||||||||
Mortgage banking | |||||||||||||||||||||||
Mortgage hedging | |||||||||||||||||||||||
Net gain on sales of SBA loans | |||||||||||||||||||||||
Earnings from cash surrender value of life insurance | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total Noninterest Income | |||||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Software licensing and utilization | |||||||||||||||||||||||
Occupancy, net | |||||||||||||||||||||||
Equipment | |||||||||||||||||||||||
Shares tax | |||||||||||||||||||||||
Legal and professional fees | |||||||||||||||||||||||
ATM/card processing | |||||||||||||||||||||||
Intangible amortization | |||||||||||||||||||||||
FDIC Assessment | |||||||||||||||||||||||
Gain on sale of foreclosed assets, net | ( | ( | ( | ( | |||||||||||||||||||
Merger and acquisition | |||||||||||||||||||||||
Post-acquisition restructuring | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total Noninterest Expense | |||||||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | $ | $ | $ | |||||||||||||||||||
PER COMMON SHARE DATA: | |||||||||||||||||||||||
Basic Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Diluted Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average basic shares outstanding | |||||||||||||||||||||||
Weighted-average diluted shares outstanding |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income : | |||||||||||||||||||||||
Unrealized losses arising during the period on available for sale securities, net of income tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
Unrealized holding gains arising during the period on interest rate derivatives used in cash flow hedges, net of income tax (cost) of ($ | |||||||||||||||||||||||
Change in defined benefit plans, net of income tax benefit (cost) of $ | ( | ( | |||||||||||||||||||||
Reclassification adjustment for settlement gains and activity related to benefit plans, net of income tax benefit of $ | ( | ( | ( | ||||||||||||||||||||
Total other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income, net of taxes | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Common stock cash dividends declared - $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Impact of adopting CECL (1) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Director Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Restricted stock activity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of taxes | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock cash dividends declared, $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued to Brunswick shareholders (2) | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchased stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Director Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Restricted stock activity | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of taxes | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock cash dividends declared - $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Riverview restricted stock adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Director Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Restricted stock activity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of taxes | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock cash dividends declared, $ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchased stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Director Stock Purchase Plan | — | — | — | ||||||||||||||||||||||||||||||||||||||
Restricted stock activity | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Operating Activities: | |||||||||||
Net Income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses - loans | |||||||||||
Depreciation | |||||||||||
Amortization of intangibles | |||||||||||
Net amortization of security discounts/premiums | |||||||||||
Noncash operating lease expense | |||||||||||
Amortization of finance lease right of use asset | |||||||||||
Earnings on cash surrender value of life insurance | ( | ( | |||||||||
Mortgage loans originated for sale | ( | ( | |||||||||
Proceeds from sales of mortgage loans originated for sale | |||||||||||
Gain on sale of mortgage loans | ( | ( | |||||||||
SBA loans originated for sale | ( | ( | |||||||||
Proceeds from sales of SBA loans originated for sale | |||||||||||
Gain on sale of SBA loans | ( | ( | |||||||||
Gain on sale of property, plant, and equipment | ( | ( | |||||||||
Gain on sale or write-down of foreclosed assets | ( | ( | |||||||||
Loss on sale of bank premises and equipment held for sale | |||||||||||
Write-off of bank premises and equipment held for sale | |||||||||||
Accretion of subordinated debt | ( | ( | |||||||||
Stock compensation expense | |||||||||||
Change in deferred income tax benefit | ( | ( | |||||||||
Increase accrued interest receivable | ( | ( | |||||||||
Increase in other assets | |||||||||||
Increase (decrease) in accrued interest payable | ( | ||||||||||
Decrease in operating lease liability | ( | ( | |||||||||
Increase (decrease) in other liabilities | ( | ||||||||||
Net Cash Provided By Operating Activities | |||||||||||
Investing Activities: | |||||||||||
Proceeds from the sale of available-for-sale securities | |||||||||||
Proceeds from the maturity or call of available-for-sale securities | |||||||||||
Purchases of available-for-sale securities | ( | ||||||||||
Proceeds from the maturity or call of held-to-maturity securities | |||||||||||
Purchases of held-to-maturity securities | ( | ||||||||||
Stock dividends of FHLB and other bank stock | |||||||||||
(Purchases) reduction of restricted investment in bank stock | ( | ||||||||||
Net cash received from acquisition | |||||||||||
Net increase in loans | ( | ( | |||||||||
Purchases of bank premises and equipment | ( | ( | |||||||||
Proceeds from the sale of premises and equipment | |||||||||||
Proceeds from the sale of foreclosed assets | |||||||||||
Proceeds from bank-owned life insurance | |||||||||||
Gain on bank-owned life insurance | ( | ||||||||||
Net change in investments in tax credits and other partnerships | ( | ( | |||||||||
Net Cash Used In Investing Activities | ( | ( | |||||||||
Financing Activities: | |||||||||||
Net increase (decrease) in deposits | ( | ||||||||||
Proceeds from long-term debt | |||||||||||
Common stock dividends paid | ( | ( | |||||||||
Proceeds from Employee and Director Stock Purchase Plan stock issuance | |||||||||||
Treasury stock purchased | ( | ( | |||||||||
Riverview restricted stock (1) | |||||||||||
Net change in finance lease liability | ( | ( | |||||||||
Net change in short-term borrowings | |||||||||||
Long-term debt repayment | ( | ( | |||||||||
Subordinated debt redemption and trust preferred securities | ( | ||||||||||
Net Cash Provided by (Used In) Financing Activities | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | |||||||||||
Supplemental Noncash Disclosures: | |||||||||||
Recognition of operating lease right of use assets | $ | $ | |||||||||
Recognition of operating lease liabilities | |||||||||||
Obsolete Riverview asset write-off | |||||||||||
Loans transferred to foreclosed assets held for sale | |||||||||||
Held-to-maturity securities purchased, not settled | |||||||||||
Fair value of assets acquired in business combination, excluding cash (2) | $ | $ | |||||||||
Goodwill recorded (2) | |||||||||||
Liabilities assumed in business combination (2) | |||||||||||
Stock issued in business combination (2) |
(In thousands) | |||||
Assets acquired: | |||||
Cash and cash equivalents | $ | ||||
Federal funds sold | |||||
Investment securities | |||||
Loans | |||||
Goodwill | |||||
Core deposit intangible | |||||
Premises and equipment | |||||
Cash surrender value of life insurance | |||||
Deferred income taxes | |||||
Accrued interest receivable | |||||
Other assets | |||||
Total assets acquired | |||||
Liabilities assumed: | |||||
Deposits: | |||||
Noninterest-bearing demand | |||||
Interest-bearing demand | |||||
Money Market | |||||
Savings | |||||
Time | |||||
Long-term debt | |||||
Accrued interest payable | |||||
Other liabilities | |||||
Total liabilities assumed | |||||
Consideration paid | $ | ||||
Cash paid | $ | ||||
Fair value of common stock issued |
June 30, 2023 | |||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total available-for-sale debt securities | |||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total held-to-maturity debt securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total available-for-sale debt securities | $ | $ | $ | $ | |||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total held-to-maturity debt securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held-to-maturity debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | Number of Securities | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(In thousands) | Available-for-sale | Held-to-maturity | |||||||||||||||||||||
June 30, 2023 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due in 1 year or less | $ | $ | $ | $ | |||||||||||||||||||
Due after 1 year but within 5 years | |||||||||||||||||||||||
Due after 5 years but within 10 years | |||||||||||||||||||||||
Due after 10 years | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
$ | $ | $ | $ |
(In thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Commercial real estate (1) | $ | $ | |||||||||
Commercial and industrial | |||||||||||
Construction | |||||||||||
Residential mortgage (1) | |||||||||||
Consumer | |||||||||||
Total loans | $ | $ |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Loans acquired with credit deterioration: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Non-accrual Loans | Total non-accrual Loans | |||||||||||||||||||||||||
(In thousands) | With a Related Allowance | Without a Related Allowance | Total | |||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
$ | $ | $ | $ |
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans Amortized Cost Basis | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard or lower | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge offs | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net charge offs | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard or lower | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Net charge offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard or lower | |||||||||||||||||||||||||||||||||||||||||||||||
Total construction | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge offs | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Current period recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Gross charge offs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Current period recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net charge offs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard or lower | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | Commercial real estate | Commercial and industrial | Construction | Residential mortgage | Consumer | Total | ||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Purchase credit deteriorated loans | ||||||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Provision for credit losses (1) | ||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ |
(In thousands) | Commercial real estate | Commercial and industrial | Construction | Residential mortgage | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Impact of adopting CECL | ||||||||||||||||||||||||||||||||||||||||||||
Purchase credit deteriorated loans | ||||||||||||||||||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Net loans (charged off) recovered | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Provision for credit losses (1) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | ACL - Loans | Loans | |||||||||||||||||||||||||||||||||
June 30, 2023 | Collectively Evaluated for Credit Loss | Individually Evaluated for Credit Loss | Total ACL - Loans | Collectively Evaluated for Credit Loss | Individually Evaluated for Credit Loss | Total Loans | |||||||||||||||||||||||||||||
Commercial Real Estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial & Industrial | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Residential Mortgage | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
As of, and for the three months ended, June 30, 2022 | Commercial Real Estate | Commercial and industrial | Construction | Residential mortgage | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||||||
April 1, 2022 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
As of, and for the six months ended, June 30, 2022 | Commercial Real Estate | Commercial and industrial | Construction | Residential mortgage | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||||||
January 1, 2022 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Provisions | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loans Receivable | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Individually Evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||
Acquired with credit deterioration | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
(In thousands) | Pass | Special Mention | Substandard | Total | ||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ |
(In thousands) | Interest Only | Term Extension | Combination: Interest Only and Term Extension | Total | % of Total Class of Financing Receivable | ||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | % | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | % | ||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | % | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | % |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In thousands) | Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | |||||||||||||||||||
Interest Rate Lock Commitments | |||||||||||||||||||||||
Positive Fair Values | $ | $ | $ | $ | |||||||||||||||||||
Negative Fair Values | ( | ( | |||||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||
Positive Fair Values | |||||||||||||||||||||||
Negative Fair Values | ( | ||||||||||||||||||||||
Interest Rate Swaps with Customers | |||||||||||||||||||||||
Positive Fair Values | |||||||||||||||||||||||
Negative Fair Values | ( | ( | |||||||||||||||||||||
Interest Rate Swaps with Counterparties | |||||||||||||||||||||||
Positive Fair Values | |||||||||||||||||||||||
Negative Fair Values | ( | ( | |||||||||||||||||||||
Interest Rate Swaps used in Cash Flow Hedges | |||||||||||||||||||||||
Positive Fair Values | |||||||||||||||||||||||
Negative Fair Values |
Three months ended | Six months ended | ||||||||||||||||||||||
(In thousands) | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||||||||
Interest Rate Lock Commitments | $ | ( | $ | $ | $ | ||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | Amount of Gain Recognized in OCI on Derivative | Amount of Gain Recognized in OCI Included Component | Amount of Gain Recognized in OCI Excluded Component | Location of Gain recognized from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Expense Included Component | Amount of Gain (Loss) Reclassified from AOCI into Expense Excluded Component | ||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | $ | $ | $ | Interest Expense | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | $ | $ | $ | Interest Expense | $ | $ | $ |
(In thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Interest Rate Swap Contracts - Commercial Loans: | |||||||||||
Gross amounts recognized (1) | $ | $ | |||||||||
Gross amounts offset (2) | |||||||||||
Net Amounts Presented in the Consolidated Balance Sheets | |||||||||||
Gross amounts not offset: | |||||||||||
Financial instruments | |||||||||||
Cash collateral (3) | |||||||||||
Net Amounts | $ | $ |
(In thousands) | Unrealized Loss on Securities | Unrealized Holding Losses on Interest Rate Derivatives used in Cash Flow Hedges | Defined Benefit Plans | Total | |||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
OCI before reclassifications | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | $ | ( | ||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Balance at March 31, 2022 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | $ | $ | ||||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | $ | $ | ( |
June 30, 2023 | ||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | ||||||||||||||||||||||
Mortgage-backed U.S. government agencies | ||||||||||||||||||||||||||
State and political subdivision obligations | ||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2022 | ||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | $ | $ | $ | ||||||||||||||||||||||
Mortgage-backed U.S. government agencies | ||||||||||||||||||||||||||
State and political subdivision obligations | ||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Individually evaluated loans, net of ACL | $ | $ | ||||||||||||
Foreclosed assets held for sale |
June 30, 2023 | ||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Financial instruments - assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Available-for-sale investment securities | ||||||||||||||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||||||||
Net loans | ||||||||||||||||||||||||||||||||
Restricted investment in bank stocks | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Financial instruments - liabilities | ||||||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||||||||
Long-term debt (1) | ||||||||||||||||||||||||||||||||
Subordinated debt | ||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||
Derivative liabilities |
December 31, 2022 | ||||||||||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||||||||||
(In thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Financial instruments - assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Available-for-sale investment securities | ||||||||||||||||||||||||||||||||
Held-to-maturity investment securities | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||||||||
Net loans | ||||||||||||||||||||||||||||||||
Restricted investment in bank stocks | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Financial instruments - liabilities | ||||||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||||||||
Long-term debt (1) | ||||||||||||||||||||||||||||||||
Subordinated debt | ||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||
Derivative liabilities |
(In thousands) | June 30, 2023 | |||||||
Balance, January 31, 2023 | $ | |||||||
Impact of adopting CECL | ||||||||
PCL - OBS exposure | ||||||||
Balance, March 31, 2023 | ||||||||
PCL - OBS exposure | ||||||||
Balance, June 30, 2023 | $ |
(Dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
FHLB fixed rate instruments: | |||||||||||
Due January 2024, | $ | $ | |||||||||
Due March 2024, | |||||||||||
Due February 2026, | |||||||||||
Due August 2026, | |||||||||||
Due February 2027, | |||||||||||
Total FHLB fixed rate instruments | |||||||||||
Lease obligations included in long-term debt | |||||||||||
Total long-term debt | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding (basic) | |||||||||||||||||||||||
Effect of dilutive unvested restricted stock grants | |||||||||||||||||||||||
Weighted average common shares outstanding (diluted) | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net Income | $ | 4,836 | $ | 12,252 | $ | 16,063 | $ | 23,606 | |||||||||||||||
Diluted EPS | $ | 0.29 | $ | 0.77 | $ | 1.00 | $ | 1.48 | |||||||||||||||
Dividends Declared | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 | |||||||||||||||
Return on average assets | 0.40 | % | 1.10 | % | 0.34 | % | 1.04 | % | |||||||||||||||
Return on average equity | 3.84 | % | 9.91 | % | 3.16 | % | 9.62 | % | |||||||||||||||
Net interest margin (1) | 3.29 | % | 3.45 | % | 3.39 | % | 3.33 | % | |||||||||||||||
Non-performing assets to total assets | 0.32 | % | 0.19 | % | 0.32 | % | 0.19 | % | |||||||||||||||
Net charge-off (recoveries) to average loans (annualized) | 0.018 | % | (0.001) | % | 0.030 | % | (0.003) | % |
Average Balances, Income and Interest Rates on a Taxable-Equivalent Basis | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Yield/ Rate | Average Balance | Interest (1) | Yield/ Rate | |||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Interest Bearing Balances | $ | 7,777 | $ | 83 | 4.28 | % | $ | 5,920 | $ | 8 | 0.54 | % | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||||||||||
Taxable | 551,832 | 3,783 | 2.75 | % | 501,631 | 2,740 | 2.19 | % | |||||||||||||||||||||||||||
Tax-Exempt | 78,918 | 495 | 2.52 | % | 78,775 | 480 | 2.44 | % | |||||||||||||||||||||||||||
Total Investment Securities | 630,750 | 4,278 | 2.72 | % | 580,406 | 3,220 | 2.23 | % | |||||||||||||||||||||||||||
Federal Funds Sold | 6,035 | 49 | 3.26 | % | 415,405 | 736 | 0.71 | % | |||||||||||||||||||||||||||
Loans | 3,808,717 | 52,192 | 5.50 | % | 3,129,334 | 34,354 | 4.40 | % | |||||||||||||||||||||||||||
Restricted Investment in Bank Stocks | 10,177 | 179 | 7.05 | % | 4,854 | 94 | 7.77 | % | |||||||||||||||||||||||||||
Total Interest-earning Assets | 4,463,456 | 56,781 | 5.10 | % | 4,135,919 | 38,412 | 3.73 | % | |||||||||||||||||||||||||||
Cash and Due from Banks | 70,378 | 59,822 | |||||||||||||||||||||||||||||||||
Other Assets | 293,952 | 270,165 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 4,827,787 | $ | 4,465,906 | |||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: | |||||||||||||||||||||||||||||||||||
Interest-bearing Demand | $ | 936,687 | $ | 3,216 | 1.38 | % | $ | 1,030,237 | $ | 462 | 0.18 | % | |||||||||||||||||||||||
Money Market | 929,774 | 5,104 | 2.20 | % | 1,079,900 | 584 | 0.22 | % | |||||||||||||||||||||||||||
Savings | 319,728 | 64 | 0.08 | % | 357,433 | 43 | 0.05 | % | |||||||||||||||||||||||||||
Time | 1,061,276 | 9,543 | 3.61 | % | 516,346 | 930 | 0.72 | % | |||||||||||||||||||||||||||
Total Interest-bearing Deposits | 3,247,465 | 17,927 | 2.21 | % | 2,983,916 | 2,019 | 0.27 | % | |||||||||||||||||||||||||||
Short-term borrowings | 94,067 | 1,507 | 6.43 | % | — | — | — | % | |||||||||||||||||||||||||||
Long-term debt | 54,347 | 194 | 1.43 | % | 9,238 | 107 | 4.65 | % | |||||||||||||||||||||||||||
Subordinated debt and trust preferred securities | 47,782 | 507 | 4.26 | % | 74,062 | 661 | 3.58 | % | |||||||||||||||||||||||||||
Total Interest-bearing Liabilities | 3,443,661 | 20,135 | 2.35 | % | 3,067,216 | 2,787 | 0.36 | % | |||||||||||||||||||||||||||
Noninterest-bearing Demand | 810,140 | 853,219 | |||||||||||||||||||||||||||||||||
Other Liabilities | 69,451 | 49,790 | |||||||||||||||||||||||||||||||||
Shareholders' Equity | 504,535 | 495,681 | |||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 4,827,787 | $ | 4,465,906 | |||||||||||||||||||||||||||||||
Net Interest Income (taxable-equivalent basis) | $ | 36,646 | $ | 35,625 | |||||||||||||||||||||||||||||||
Taxable Equivalent Adjustment | (202) | (192) | |||||||||||||||||||||||||||||||||
Net Interest Income | $ | 36,444 | $ | 35,433 | |||||||||||||||||||||||||||||||
Total Yield on Earning Assets | 5.10 | % | 3.73 | % | |||||||||||||||||||||||||||||||
Rate on Supporting Liabilities | 2.35 | % | 0.36 | % | |||||||||||||||||||||||||||||||
Average Interest Spread | 2.76 | % | 3.37 | % | |||||||||||||||||||||||||||||||
Net Interest Margin | 3.29 | % | 3.45 | % |
Three months ended June 30, 2023 vs. June 30, 2022 | |||||||||||||||||
Increase (decrease) | |||||||||||||||||
(Dollars in thousands) | Volume | Rate | Net | ||||||||||||||
INTEREST INCOME: | |||||||||||||||||
Interest Bearing Balances | $ | 3 | $ | 72 | $ | 75 | |||||||||||
Investment Securities: | |||||||||||||||||
Taxable | 274 | 769 | 1,043 | ||||||||||||||
Tax-Exempt | 1 | 14 | 15 | ||||||||||||||
Total Investment Securities | 275 | 783 | 1,058 | ||||||||||||||
Federal Funds Sold | (725) | 38 | (687) | ||||||||||||||
Loans | 7,453 | 10,385 | 17,838 | ||||||||||||||
Restricted Investment Bank Stocks | 103 | (18) | 85 | ||||||||||||||
Total Interest Income | 7,109 | 11,260 | 18,369 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||
Interest Bearing Deposits: | |||||||||||||||||
Interest Bearing Demand | (42) | 2,796 | 2,754 | ||||||||||||||
Money Market | (82) | 4,602 | 4,520 | ||||||||||||||
Savings | (5) | 26 | 21 | ||||||||||||||
Time | 978 | 7,635 | 8,613 | ||||||||||||||
Total Interest-Bearing Deposits | 849 | 15,059 | 15,908 | ||||||||||||||
Short-term Borrowings | 1,507 | — | 1,507 | ||||||||||||||
Long-term Debt | 523 | (436) | 87 | ||||||||||||||
Subordinated Debt | (235) | 81 | (154) | ||||||||||||||
Total Interest Expense | 2,644 | 14,704 | 17,348 | ||||||||||||||
NET INTEREST INCOME | $ | 4,465 | $ | (3,444) | $ | 1,021 |
Average Balances, Income and Interest Rates on a Taxable-Equivalent Basis | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Yield/ Rate | Average Balance | Interest (1) | Yield/ Rate | |||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Interest Bearing Balances | $ | 6,774 | $ | 136 | 4.05 | % | $ | 48,495 | $ | 21 | 0.09 | % | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||||||||||
Taxable | 554,352 | 7,547 | 2.75 | 445,644 | 4,561 | 2.06 | |||||||||||||||||||||||||||||
Tax-Exempt | 79,083 | 987 | 2.52 | 76,208 | 905 | 2.39 | |||||||||||||||||||||||||||||
Total Investment Securities | 633,435 | 8,534 | 2.72 | 521,852 | 5,466 | 2.11 | |||||||||||||||||||||||||||||
Federal Funds Sold | 4,911 | 94 | 3.86 | 560,105 | 1,050 | 0.38 | |||||||||||||||||||||||||||||
Loans, Net of unearned interest | 3,682,747 | 98,152 | 5.37 | 3,116,473 | 69,477 | 4.50 | |||||||||||||||||||||||||||||
Restricted Investment in Bank Stocks | 9,861 | 289 | 5.91 | 6,590 | 225 | 6.89 | |||||||||||||||||||||||||||||
Total Interest-earning Assets | 4,337,728 | 107,205 | 4.98 | 4,253,515 | 76,239 | 3.61 | |||||||||||||||||||||||||||||
Cash and Due from Banks | 60,964 | 54,177 | |||||||||||||||||||||||||||||||||
Other Assets | 276,484 | 272,922 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 4,675,176 | $ | 4,580,614 | |||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: | |||||||||||||||||||||||||||||||||||
Interest-bearing Demand | $ | 952,730 | $ | 5,907 | 1.25 | % | $ | 1,037,915 | $ | 923 | 0.18 | % | |||||||||||||||||||||||
Money Market | 935,000 | 9,188 | 1.98 | 1,102,372 | 1,184 | 0.22 | |||||||||||||||||||||||||||||
Savings | 325,219 | 118 | 0.07 | 366,668 | 101 | 0.06 | |||||||||||||||||||||||||||||
Time | 906,299 | 14,715 | 3.27 | 554,378 | 2,105 | 0.77 | |||||||||||||||||||||||||||||
Total Interest-bearing Deposits | 3,119,248 | 29,928 | 1.93 | 3,061,333 | 4,313 | 0.28 | |||||||||||||||||||||||||||||
Short-term borrowings | 107,906 | 2,997 | 5.60 | — | — | — | |||||||||||||||||||||||||||||
Long-term debt | 29,487 | 238 | 1.63 | 42,513 | 391 | 1.85 | |||||||||||||||||||||||||||||
Subordinated debt and trust preferred securities | 52,304 | 1,149 | 4.43 | 74,126 | 1,301 | 3.54 | |||||||||||||||||||||||||||||
Total Interest-bearing Liabilities | 3,308,945 | 34,312 | 2.09 | 3,177,972 | 6,005 | 0.38 | |||||||||||||||||||||||||||||
Noninterest-bearing Demand | 801,807 | 856,324 | |||||||||||||||||||||||||||||||||
Other Liabilities | 56,746 | 51,612 | |||||||||||||||||||||||||||||||||
Shareholders' Equity | 507,678 | 494,706 | |||||||||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 4,675,176 | $ | 4,580,614 | |||||||||||||||||||||||||||||||
Net Interest Income (taxable-equivalent basis) | $ | 72,893 | $ | 70,234 | |||||||||||||||||||||||||||||||
Taxable Equivalent Adjustment | (400) | (387) | |||||||||||||||||||||||||||||||||
Net Interest Income | $ | 72,493 | $ | 69,847 | |||||||||||||||||||||||||||||||
Total Yield on Earning Assets | 4.98 | % | 3.61 | % | |||||||||||||||||||||||||||||||
Rate on Supporting Liabilities | 2.09 | 0.38 | |||||||||||||||||||||||||||||||||
Average Interest Spread | 2.89 | 3.23 | |||||||||||||||||||||||||||||||||
Net Interest Margin | 3.39 | 3.33 |
Six Months Ended June 30, 2023 vs. June 30, 2022 | |||||||||||||||||
(Dollars in thousands) | Increase (decrease) | ||||||||||||||||
Volume | Rate (1) | Net | |||||||||||||||
INTEREST INCOME: | |||||||||||||||||
Interest Bearing Balances | $ | (19) | $ | 134 | $ | 115 | |||||||||||
Investment Securities: | |||||||||||||||||
Taxable | 1,110 | 1,876 | 2,986 | ||||||||||||||
Tax-Exempt | 34 | 48 | 82 | ||||||||||||||
Total Investment Securities | 1,144 | 1,924 | 3,068 | ||||||||||||||
Federal Funds Sold | (1,046) | 90 | (956) | ||||||||||||||
Loans, Net | 12,636 | 16,039 | 28,675 | ||||||||||||||
Restricted Investment Bank Stocks | 112 | (48) | 64 | ||||||||||||||
Total Interest Income | 12,827 | 18,139 | 30,966 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||
Interest Bearing Deposits: | |||||||||||||||||
Interest Bearing Demand | (76) | 5,060 | 4,984 | ||||||||||||||
Money Market | (183) | 8,187 | 8,004 | ||||||||||||||
Savings | (12) | 29 | 17 | ||||||||||||||
Time | 1,344 | 11,266 | 12,610 | ||||||||||||||
Total Interest-Bearing Deposits | 1,073 | 24,542 | 25,615 | ||||||||||||||
Short-term Borrowings | 2,997 | — | 2,997 | ||||||||||||||
Long-term Debt | (120) | (33) | (153) | ||||||||||||||
Subordinated Debt | (383) | 231 | (152) | ||||||||||||||
Total Interest Expense | 3,567 | 24,740 | 28,307 | ||||||||||||||
NET INTEREST INCOME | $ | 9,260 | $ | (6,601) | $ | 2,659 |
Three Months Ended June 30, | |||||||||||||||||||||||
(Dollars in Thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Fiduciary and wealth management | $ | 1,204 | $ | 1,205 | $ | (1) | (0.1 | %) | |||||||||||||||
ATM debit card interchange | 998 | 1,128 | (130) | (11.5) | |||||||||||||||||||
Service charges on deposits | 514 | 450 | 64 | 14.2 | |||||||||||||||||||
Mortgage banking | 287 | 305 | (18) | (5.9) | |||||||||||||||||||
Mortgage hedging | 128 | 538 | (410) | (76.2) | |||||||||||||||||||
Net gain on sales of SBA loans | 128 | 119 | 9 | 7.6 | |||||||||||||||||||
Earnings from cash surrender value of life insurance | 292 | 262 | 30 | 11.5 | |||||||||||||||||||
Other | 1,669 | 1,223 | 446 | 36.5 | |||||||||||||||||||
Total | $ | 5,220 | $ | 5,230 | $ | (10) | (0.2 | %) |
Six Months Ended June 30, | |||||||||||||||||||||||
(Dollars in Thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Fiduciary and wealth management | $ | 2,440 | $ | 2,257 | $ | 183 | 8.1 | % | |||||||||||||||
ATM debit card interchange | 2,054 | 2,185 | (131) | (6.0) | |||||||||||||||||||
Service charges on deposits | 949 | 1,134 | (185) | (16.3) | |||||||||||||||||||
Mortgage banking | 671 | 834 | (163) | (19.5) | |||||||||||||||||||
Mortgage hedging | 148 | 1,104 | (956) | (86.6) | |||||||||||||||||||
Net gain on sales of SBA loans | 128 | 110 | 18 | 16.4 | |||||||||||||||||||
Earnings from cash surrender value of life insurance | 546 | 508 | 38 | 7.5 | |||||||||||||||||||
Other | 2,609 | 2,848 | (239) | (8.4) | |||||||||||||||||||
Total | $ | 9,545 | $ | 10,980 | $ | (1,435) | (13.1 | %) |
Three Months Ended June 30, | |||||||||||||||||||||||
(Dollars in Thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Salaries and employee benefits | $ | 15,027 | $ | 12,340 | $ | 2,687 | 21.8 | % | |||||||||||||||
Software licensing and utilization | 2,070 | 1,821 | 249 | 13.7 | |||||||||||||||||||
Occupancy expense, net | 1,750 | 1,655 | 95 | 5.7 | |||||||||||||||||||
Equipment expense | 1,248 | 1,112 | 136 | 12.2 | |||||||||||||||||||
Shares tax | 751 | 480 | 271 | 56.5 | |||||||||||||||||||
Legal and professional fees | 602 | 694 | (92) | (13.3) | |||||||||||||||||||
ATM/card processing | 532 | 571 | (39) | (6.8) | |||||||||||||||||||
Intangible amortization | 461 | 521 | (60) | (11.5) | |||||||||||||||||||
FDIC Assessment | 684 | 506 | 178 | 35.2 | |||||||||||||||||||
Gain on sale of foreclosed assets, net | (126) | (15) | (111) | N/M | |||||||||||||||||||
Merger and acquisition expense | 4,992 | — | 4,992 | N/M | |||||||||||||||||||
Post-acquisition restructuring expense | 2,952 | — | 2,952 | N/M | |||||||||||||||||||
Other expenses | 4,586 | 4,230 | 356 | 8.4 | |||||||||||||||||||
Total Noninterest Expense | $ | 35,529 | $ | 23,915 | $ | 11,614 | 48.6 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
(Dollars in Thousands) | 2023 | 2022 | $ Variance | % Variance | |||||||||||||||||||
Salaries and employee benefits | $ | 28,871 | $ | 25,584 | $ | 3,287 | 12.8 | ||||||||||||||||
Software licensing and utilization | 4,016 | 3,927 | 89 | 2.3 | |||||||||||||||||||
Occupancy expense, net | 3,636 | 3,454 | 182 | 5.3 | |||||||||||||||||||
Equipment expense | 2,499 | 2,123 | 376 | 17.7 | |||||||||||||||||||
Shares tax | 1,650 | 1,706 | (56) | (3.3) | |||||||||||||||||||
Legal and professional fees | 1,402 | 1,333 | 69 | 5.2 | |||||||||||||||||||
ATM/card processing | 1,025 | 1,087 | (62) | (5.7) | |||||||||||||||||||
Intangible amortization | 805 | 1,002 | (197) | (19.7) | |||||||||||||||||||
FDIC Assessment | 1,024 | 1,097 | (73) | (6.7) | |||||||||||||||||||
Gain on sale of foreclosed assets, net | (126) | (31) | (95) | N/M | |||||||||||||||||||
Merger and acquisition expense | 5,216 | — | 5,216 | N/M | |||||||||||||||||||
Post-acquisition restructuring expense | 2,952 | 329 | 2,623 | N/M | |||||||||||||||||||
Other expenses | 8,629 | 8,049 | 580 | 7.2 | |||||||||||||||||||
Total Noninterest Expense | $ | 61,599 | $ | 49,660 | $ | 11,939 | 24.0 | % |
Maturing | |||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | One Year and Less | After One Year thru Five Years | After Five Years Thru Ten Years | After Ten Years | |||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | |||||||||||||||||||||||||||||||||||||||
Available for sale securities, at fair value: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 4,891 | 3.20 | % | $ | 26,456 | 2.97 | % | $ | 3,580 | 2.85 | % | $ | — | — | % | |||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | — | — | — | — | 5,482 | 2.53 | 153,218 | 3.02 | |||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | — | — | — | — | 1,247 | 2.22 | 2,314 | 2.52 | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 250 | 1.50 | 12,048 | 4.67 | 19,288 | 4.42 | — | — | |||||||||||||||||||||||||||||||||||||||
$ | 5,141 | 4.70 | % | $ | 38,504 | 3.49 | % | $ | 29,597 | 3.81 | % | $ | 155,532 | 3.01 | % | ||||||||||||||||||||||||||||||||
Held to maturity securities, at amortized cost: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | — | — | % | $ | 57,500 | 2.25 | % | $ | 168,333 | 2.00 | % | $ | 19,904 | 2.18 | % | |||||||||||||||||||||||||||||||
Mortgage-backed U.S. government agencies | — | — | 1,942 | 2.91 | 8,901 | 2.84 | 36,286 | 1.99 | |||||||||||||||||||||||||||||||||||||||
State and political subdivision obligations | 4,958 | 2.25 | 30,414 | 2.64 | 29,916 | 2.16 | 21,198 | 2.55 | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | — | 15,529 | 3.82 | 9,950 | 3.19 | — | — | |||||||||||||||||||||||||||||||||||||||
$ | 4,958 | 2.25 | % | $ | 105,385 | 2.47 | % | $ | 217,100 | 2.11 | % | $ | 77,388 | 2.19 | % |
June 30, 2023 | December 31, 2022 | Change in Balance | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | % of Total Loans | Balance | % of Total Loans | $ | % | |||||||||||||||||||||||||||||
Commercial real estate (1) | $ | 2,145,272 | 53.2 | % | $ | 2,052,934 | 58.3 | % | $ | 92,338 | 4.5 | % | |||||||||||||||||||||||
Commercial and industrial | 635,929 | 15.8 | 596,042 | 17.0 | 39,887 | 6.7 | |||||||||||||||||||||||||||||
Construction | 515,398 | 12.8 | 441,246 | 12.6 | 74,152 | 16.8 | |||||||||||||||||||||||||||||
Residential mortgage (1) | 730,176 | 18.1 | 416,221 | 11.9 | 313,955 | 75.4 | |||||||||||||||||||||||||||||
Consumer | 7,735 | 0.2 | 7,676 | 0.2 | 59 | 0.8 | |||||||||||||||||||||||||||||
$ | 4,034,510 | 100.0 | % | $ | 3,514,119 | 100.0 | % | $ | 520,391 | 14.8 | % |
(In Thousands) | |||||||||||||||||||||||||||||
As of June 30, 2023 | One Year and Less | One to Five Years | Five to Fifteen Years | Over Fifteen Years | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 8,609 | $ | 285,577 | $ | 122,835 | $ | 218,908 | $ | 635,929 | |||||||||||||||||||
Commercial real estate | 66,675 | 379,727 | 936,086 | 762,784 | 2,145,272 | ||||||||||||||||||||||||
Construction | 131,719 | 232,975 | 70,271 | 80,433 | 515,398 | ||||||||||||||||||||||||
Residential mortgage | 31,119 | 86,424 | 206,846 | 405,787 | 730,176 | ||||||||||||||||||||||||
Consumer | 1,264 | 1,852 | 1,389 | 3,230 | 7,735 | ||||||||||||||||||||||||
Total loans held in portfolio | $ | 239,386 | $ | 986,555 | $ | 1,337,427 | $ | 1,471,142 | $ | 4,034,510 | |||||||||||||||||||
Predetermined (fixed) interest rates | 136,420 | 609,996 | 290,565 | 152,778 | $ | 1,189,759 | |||||||||||||||||||||||
Floating interest rates | 102,966 | 376,559 | 1,046,862 | 1,318,364 | $ | 2,844,751 | |||||||||||||||||||||||
Total | 239,386 | 986,555 | 1,337,427 | 1,471,142 | 4,034,510 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Balance, beginning of period | $ | 31,265 | $ | 15,147 | $ | 18,957 | $ | 14,597 | |||||||||||||||
Impact of adopting CECL | — | — | 11,931 | — | |||||||||||||||||||
Purchase credit deteriorated loans | 336 | — | 336 | — | |||||||||||||||||||
Loans charged off during period | (174) | (9) | (324) | (66) | |||||||||||||||||||
Recoveries of loans previously charged off | 4 | 13 | 41 | 120 | |||||||||||||||||||
Net (charge-offs) recoveries | (170) | 4 | (283) | 54 | |||||||||||||||||||
Provision for credit losses (1) | 1,157 | 1,725 | 1,647 | 2,225 | |||||||||||||||||||
Balance, end of period | $ | 32,588 | $ | 16,876 | $ | 32,588 | $ | 16,876 | |||||||||||||||
Ratio of net charge-offs (recoveries) to average loans outstanding (annualized) | 0.018 | % | (0.001) | % | 0.015 | % | (0.003) | % | |||||||||||||||
Ratio of ACL - loans to net loans at end of period | 0.81 | % | 0.53 | % | 0.81 | % | 0.53 | % |
(Dollars in thousands) | June 30, 2023 | December 31, 2022 | June 30, 2022 | ||||||||||||||
Non-performing Assets: | |||||||||||||||||
Total non-performing loans | $ | 15,846 | $ | 8,585 | $ | 7,973 | |||||||||||
Foreclosed real estate | 489 | 43 | 69 | ||||||||||||||
Total non-performing assets | 16,335 | 8,628 | 8,042 | ||||||||||||||
Accruing loans 90 days or more past due | 9 | 654 | — | ||||||||||||||
Total risk elements | $ | 16,344 | $ | 9,282 | $ | 8,042 | |||||||||||
Non-performing loans as a percentage of total loans outstanding | 0.39 | % | 0.24 | % | 0.25 | % | |||||||||||
Non-performing assets as a percentage of total loans outstanding and foreclosed real estate | 0.40 | % | 0.25 | % | 0.26 | % | |||||||||||
Ratio of ACL to non-performing loans | 205.65 | % | 220.82 | % | 190.84 | % |
June 30, 2023 | December 31, 2022 | Regulatory Minimum for Capital Adequacy | Fully Phased-In, with Capital Conversation Buffers | |||||||||||||||||||||||
Total Risk-Based Capital (to Risk-Weighted Assets) | 11.50 | % | 13.19 | % | 10.50 | % | 10.50 | % | ||||||||||||||||||
Tier I Risk-Based Capital (to Risk-Weighted Assets) | 9.56 | 11.18 | 8.50 | 8.50 | ||||||||||||||||||||||
Common Equity Tier I (to Risk-Weighted Assets) | 9.56 | 11.18 | 7.00 | 7.00 | ||||||||||||||||||||||
Tier I Leverage Capital (to Average Assets) | 8.27 | 8.57 | 4.00 | 4.00 |
Change in Basis Points | % Change in Net Interest Income | Policy Risk Limit | ||||||||||||
400 | 2.89% | ≥ -25% | ||||||||||||
300 | 2.23% | ≥ -20% | ||||||||||||
200 | 1.55% | ≥ -15% | ||||||||||||
100 | 0.83% | ≥ -10% | ||||||||||||
(100) | 0.71% | ≥ -10% | ||||||||||||
(200) | 0.76% | ≥ -15% | ||||||||||||
(300) | (1.61)% | ≥ -20% | ||||||||||||
(400) | (4.05)% | ≥ -25% |
Period | Total Number of Shares Purchased | Average Price Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
April 1 - April 30, 2023 | — | $ | — | 208,343 | $ | 10,119,703 | ||||||||||||||||||||
May 1 - May 31, 2023 | 130,879 | 21.52 | 339,222 | 7,302,795 | ||||||||||||||||||||||
June 1 - June 30, 2023 | 73,500 | 23.98 | 412,722 | 5,540,228 |
Mid Penn Bancorp, Inc. (Registrant) | ||||||||
By: | /s/ Rory G. Ritrievi | |||||||
Rory G. Ritrievi President and CEO (Principal Executive Officer) | ||||||||
Date: | August 8, 2023 | |||||||
By: | /s/ Allison S. Johnson | |||||||
Allison S. Johnson Chief Financial Officer (Principal Financial Officer) | ||||||||
Date: | August 8, 2023 |
By: | /s/ Rory G. Ritrievi | ||||||||||
Rory G. Ritrievi | |||||||||||
President and CEO | |||||||||||
Date: | August 8, 2023 |
By: | /s/ Allison S. Johnson | ||||||||||
Allison S. Johnson | |||||||||||
Chief Financial Officer | |||||||||||
Date: | August 8, 2023 |
By: | /s/ Rory G. Ritrievi | ||||||||||
Rory G. Ritrievi | |||||||||||
President and CEO | |||||||||||
Date: | August 8, 2023 | ||||||||||
By: | /s/ Allison S. Johnson | ||||||||||
Allison S. Johnson | |||||||||||
Chief Financial Officer | |||||||||||
Date: | August 8, 2023 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, at fair value | $ 355,789 | $ 348,505 |
Common stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, authorized (in shares) | 40,000,000 | 20,000,000 |
Common stock, issued (in shares) | 16,980,300 | 16,094,486 |
Common stock, outstanding (in shares) | 16,567,578 | 15,886,143 |
Treasury stock (in shares) | 412,722 | 208,343 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Net income | $ 4,836 | $ 12,252 | $ 16,063 | $ 23,606 | ||||||
Other comprehensive (loss) income : | ||||||||||
Unrealized (losses) arising during the period on available for sale securities, net of income tax costs | [1] | (3,261) | (4,812) | (1,284) | (10,042) | |||||
Unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges, net of income tax benefit | [1] | 2,837 | 0 | 2,709 | 0 | |||||
Change in defined benefit plans, net of income tax (cost) benefit | [1],[2] | (7) | 0 | (2) | 127 | |||||
Reclassification adjustment for settlement losses and other activity related to benefit plans, net of income taxes | [1],[3] | 0 | (1) | (12) | (2) | |||||
Total other comprehensive (loss) income | (431) | (4,813) | 1,411 | (9,917) | ||||||
Total comprehensive income | $ 4,405 | $ 7,439 | $ 17,474 | $ 13,689 | ||||||
|
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) arising during period on available for sale securities, income tax (cost) benefit | $ 867 | $ 1,279 | $ 341 | $ 2,669 |
Unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges, income tax benefit | (754) | 0 | (720) | 0 |
Change in defined benefit plans, expense (benefit) | 1 | 0 | 0 | (33) |
Reclassification adjustment for settlement losses and other activity related to benefit plans, benefit (expense) | $ 0 | $ 0 | $ 3 | $ 0 |
Consolidated Statements of Changes In Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Common stock cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] |
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||
Operating Activities: | ||||||
Net Income | $ 16,063 | $ 23,606 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for credit losses - loans | 1,647 | 2,225 | ||||
Depreciation | 2,393 | 1,993 | ||||
Amortization of intangibles | 805 | 1,002 | ||||
Net amortization of security discounts/premiums | 247 | 384 | ||||
Noncash operating lease expense | 1,028 | 844 | ||||
Amortization of finance lease right of use asset | 90 | 90 | ||||
Earnings on cash surrender value of life insurance | (546) | (508) | ||||
Mortgage loans originated for sale | (53,679) | (82,142) | ||||
Proceeds from sales of mortgage loans originated for sale | 49,567 | 84,916 | ||||
Gain on sale of mortgage loans | (671) | (834) | ||||
SBA loans originated for sale | (2,080) | (2,636) | ||||
Proceeds from sales of SBA loans originated for sale | 2,208 | 2,807 | ||||
Gain on sale of SBA loans | (128) | (110) | ||||
Gain on sale of property, plant, and equipment | (59) | (71) | ||||
Gain on sale of foreclosed assets, net | (126) | (31) | ||||
Loss on sale of bank premises and equipment held for sale | 0 | 1,333 | ||||
Write-off of bank premises and equipment held for sale | 0 | 705 | ||||
Accretion of subordinated debt | (293) | (279) | ||||
Stock compensation expense | 500 | 459 | ||||
Change in deferred income tax benefit | (1,148) | (206) | ||||
Increase accrued interest receivable | (50) | (1,574) | ||||
Increase in other assets | 490 | 504 | ||||
Increase (decrease) in accrued interest payable | 6,901 | (249) | ||||
Decrease in operating lease liability | (1,167) | (1,154) | ||||
Increase (decrease) in other liabilities | 1,879 | (7,301) | ||||
Net Cash Provided By Operating Activities | 23,871 | 23,773 | ||||
Investing Activities: | ||||||
Proceeds from the sale of available-for-sale securities | 1,751 | 0 | ||||
Proceeds from the maturity or call of available-for-sale securities | 7,927 | 5,439 | ||||
Purchases of available-for-sale securities | 0 | (174,102) | ||||
Proceeds from the maturity or call of held-to-maturity securities | 4,968 | 9,620 | ||||
Purchases of held-to-maturity securities | 0 | (79,664) | ||||
Stock dividends of FHLB and other bank stock | 289 | 0 | ||||
(Purchases) reduction of restricted investment in bank stock | (3,620) | 4,900 | ||||
Net cash received from acquisition | 1,068 | 0 | ||||
Net increase in loans | (206,677) | (75,753) | ||||
Purchases of bank premises and equipment | (1,837) | (2,549) | ||||
Proceeds from the sale of premises and equipment | 59 | 127 | ||||
Proceeds from the sale of foreclosed assets | 374 | 71 | ||||
Proceeds from bank-owned life insurance | 774 | 0 | ||||
Gain on bank-owned life insurance | (125) | 0 | ||||
Net change in investments in tax credits and other partnerships | (4,854) | (4,332) | ||||
Net Cash Used In Investing Activities | (199,903) | (316,243) | ||||
Financing Activities: | ||||||
Net increase (decrease) in deposits | 225,736 | (299,429) | ||||
Proceeds from long-term debt | 25,000 | 0 | ||||
Common stock dividends paid | (6,358) | (6,384) | ||||
Proceeds from Employee and Director Stock Purchase Plan stock issuance | 206 | 176 | ||||
Treasury stock purchased | (4,580) | (2,957) | ||||
Riverview restricted stock | [1] | 0 | 776 | |||
Net change in finance lease liability | (46) | (44) | ||||
Net change in short-term borrowings | 9,795 | 0 | ||||
Long-term debt repayment | (30,727) | (76,634) | ||||
Subordinated debt redemption and trust preferred securities | (10,000) | 0 | ||||
Net Cash Provided by (Used In) Financing Activities | 209,026 | (384,496) | ||||
Net increase (decrease) in cash and cash equivalents | 32,994 | (676,966) | ||||
Cash and cash equivalents, beginning of period | 60,881 | 913,752 | ||||
Cash and cash equivalents, end of period | 93,875 | 236,786 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||
Cash paid for interest | 25,500 | 3,467 | ||||
Cash paid for income taxes | 3,970 | 3,500 | ||||
Supplemental Noncash Disclosures: | ||||||
Recognition of operating lease right of use assets | 1,336 | 115 | ||||
Recognition of operating lease liabilities | 1,336 | 115 | ||||
Obsolete Riverview asset write-off | 0 | 705 | ||||
Loans transferred to foreclosed assets held for sale | 693 | 109 | ||||
Held-to-maturity securities purchased, not settled | 0 | 524 | ||||
Fair value of assets acquired in business combinations, excluding cash | [2] | 370,919 | 0 | |||
Goodwill recorded | [2] | 15,172 | 0 | |||
Liabilities assumed in business combination | [2] | 346,288 | 0 | |||
Stock issued in business combination | [2] | $ 18,095 | $ 0 | |||
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Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
shares
| |
Statement of Cash Flows [Abstract] | |
Restricted stock shares paid out in cash | shares | 2,500 |
Stock issued during period pursuant to acquisition, value | $ | $ 776 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation For all periods presented, the accompanying consolidated financial statements include the accounts of Mid Penn Bancorp, Inc., its wholly-owned subsidiary, Mid Penn Bank, and four nonbank subsidiaries, MPB Financial Services, LLC, which includes MPB Wealth Management, LLC and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of June 30, 2023, the accounts and activities of these nonbank subsidiaries were not material to warrant separate disclosure or segment reporting. As a result, Mid Penn has only one reportable segment for financial reporting purposes. All material intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Mid Penn believes the information presented is not misleading, and the disclosures are adequate. For comparative purposes, the June 30, 2022 and December 31, 2022 balances have been reclassified, when necessary, to conform to the 2023 presentation. Such reclassifications had no impact on net income or total shareholders’ equity. In the opinion of management, all adjustments necessary for fair presentation of the periods presented have been reflected in the accompanying consolidated financial statements. All such adjustments are of a normal, recurring nature. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2022 Annual Report. Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2023, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. CECL Adoption and Updated Significant Accounting Policy On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology, and is referred to as CECL. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loans and HTM debt securities. It also applies to OBS credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASC Topic 842. The Corporation adopted CECL using the modified retrospective method for all financial assets measured at amortized cost, net of investments in leases and OBS credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL, while prior period results are reported in accordance with the previously applicable incurred loss methodology. The Corporation recorded an overall increase of $15.0 million to the ACL on January 1, 2023 as a result of the adoption of CECL. Retained earnings decreased $11.5 million and deferred tax assets increased by $3.1 million. Included in the $15.0 million increase to the ACL was $3.1 million for certain OBS credit exposures that were previously recognized in other liabilities before the adoption of CECL. On January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification ("ASC") Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. See "Note 4 - Loans and Allowance for Credit Losses - Loans" for the new financial statement disclosures applicable under this update. The updates to the significant accounting policies related to CECL are further discussed in "Note 3 - Investment Securities", "Note 4 - Loans and Allowance for Credit Losses - Loans" and "Note 8 - Commitments and Contingencies". All other significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the 2022 Annual Report. Those significant accounting policies are unchanged at June 30, 2023. Accounting Standards Pending Adoption ASU No. 2023-02: The FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. The Corporation does not expect the adoption of ASU No. 2023-02 to have a material impact on its consolidated financial statements.
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Business Combination |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination | Business Combination Brunswick Acquisition On May 19, 2023, Mid Penn completed its acquisition of Brunswick through the merger of Brunswick with and into Mid Penn with Mid Penn being the surviving corporation. In connection with this acquisition, Brunswick Bank, a wholly-owned subsidiary of Brunswick, merged with and into Mid Penn Bank, a wholly-owned subsidiary of Mid Penn. This transaction included the acquisition of 5 branches and extended Mid Penn’s footprint into Middlesex and Monmouth counties in central New Jersey. Mid Penn issued 849,510 shares of its common stock as well as a net cash payment to Brunswick shareholders of $27.6 million, for total consideration of $45.7 million for all outstanding stock and the cancellation of stock options of Brunswick. Mid Penn has recognized total goodwill of $15.2 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the fair market value of identifiable assets acquired. The fair value of the consideration exchanged related to Mid Penn’s common stock was calculated based upon the closing market price of Mid Penn’s common stock as of May 19, 2023. None of the goodwill recognized is expected to be deductible for income tax purposes. Mid Penn incurred expenses related to the Brunswick Acquisition of approximately $7.9 million for the three months ended June 30, 2023 and $8.2 million for the six months ended June 30, 2023, which are included in noninterest expense in the Consolidated Statements of Income. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. Mid Penn considers various factors in connection with the identification of more-than-insignificant deterioration in credit, including but not limited to nonperforming status, delinquency, risk ratings, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. As part of the Brunswick Acquisition, Mid Penn acquired PCD loans and leases of $18.7 million. Mid Penn established an ACL at acquisition of $355 thousand with a corresponding gross-up to the amortized cost of the PCD loans and leases. The non-credit discount on the PCD loans and leases was $2.1 million and the Day 1 fair value was $16.6 million. The initial provision expense for non-PCD loans associated with the Brunswick Acquisition was $2.0 million. Estimated fair values of the assets acquired and liabilities assumed in the Brunswick Acquisition as of the closing date are as follows:
Management is still evaluating the fair values of all assets and liabilities shown in the table above. Management is working with third parties to finalize the fair value of loans, appraised value of acquired properties, valuation of core deposit intangibles, and time deposit discount. Additionally, management is evaluating other assets and other liabilities and related deferred tax adjustments based on the completion of other fair value adjustments.
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Investment Securities |
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Securities Financing Transactions Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities FASB ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," was adopted by Mid Penn on January 1, 2023. ASU 2016-13 introduces the CECL methodology for estimating allowances for credit losses. ASU 2016-13 applies to all financial instruments carried at amortized cost, including HTM securities, and makes targeted improvements to the accounting for credit losses on AFS securities. In order to comply with ASC 326, Mid Penn conducted a review of its investment portfolio and determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero. This zero-credit loss assumption applies to debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. The reasons behind the adoption of the zero-credit loss assumption are as follows: •High credit rating •Long history with no credit losses •Guaranteed by a sovereign entity •Widely recognized as "risk-free rate" •Can print its own currency •Currency is routinely held by central banks, used in international commerce, and commonly viewed as reserve currency •Currently under the U.S. Government conservatorship or receivership Mid Penn will continuously monitor any changes in economic conditions, credit downgrades, changes to explicit or implicit guarantees granted to certain debt issuers, and any other relevant information that would indicate potential credit deterioration and prompt Mid Penn to reconsider its zero-credit loss assumption. At the date of adoption, Mid Penn’s estimated allowance for credit losses on AFS and HTM securities under ASU 2016-13 was deemed immaterial due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal. Therefore, Mid Penn did not recognize a cumulative effect adjustment through retained earnings related to the AFS and HTM securities. AFS Securities ASU 2016-13 makes targeted improvements to the accounting for credit losses on AFS securities. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike HTM securities, AFS securities are evaluated on an individual level and pooling of securities is not allowed. Quarterly, Mid Penn evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, Mid Penn performs further analysis as outlined below: •Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. •The securities that violate the credit loss triggers above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. •If Mid Penn determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss Mid Penn records will be limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by a reputable third-party. At June 30, 2023, the results of the analysis did not identify any securities that violate the credit loss triggers; therefore, no DCF analysis was performed and no credit loss was recognized on any of the securities available for sale. Accrued interest receivable is excluded from the estimate of credit losses for AFS securities. At June 30, 2023, accrued interest receivable totaled $1.1 million for AFS securities and was reported in other assets on the accompanying Consolidated Balance Sheet. HTM Securities ASU 2016-13 requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risks exist. Mid Penn uses several levels of segmentation in order to measure expected credit losses: •The portfolio is segmented into agency and non-agency securities. •The non-agency securities are separated into state and political subdivision obligations and corporate debt securities. Each individual segment is categorized by third-party credit ratings. As discussed above, Mid Penn has determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero, which include debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. This assumption will be reviewed and attested to quarterly. At June 30, 2023, Mid Penn’s HTM securities totaled $404.8 million. After applying appropriate probability of default and loss given default assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded at June 30, 2023. Accrued interest receivable is excluded from the estimate of credit losses for HTM securities. At June 30, 2023, accrued interest receivable totaled $1.8 million for HTM securities and was reported in other assets on the accompanying Consolidated Balance Sheet. At June 30, 2023, Mid Penn had no HTM securities that were past due 30 days or more as to principal or interest payments. Mid Penn had no HTM securities classified as nonaccrual at June 30, 2023. The amortized cost and estimated fair value of investment securities for the periods presented:
Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of instruments of a similar type, credit quality and structure, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 7 - Fair Value Measurement," for additional information. Investment securities having a fair value of $406.0 million at June 30, 2023 and $338.8 million at December 31, 2022 were pledged to secure public deposits, some Trust department deposit accounts, and certain other borrowings. In accordance with legal provisions for alternatives other than pledging of investments, Mid Penn also obtains letters of credit from the FHLB to secure certain public deposits. These FHLB letter of credit commitments totaled $175.0 million as of June 30, 2023 and $189.0 million as of December 31, 2022. The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the periods presented:
There were no gross realized gains and losses on sales of available-for-sale debt securities for the three and six months ended June 30, 2023 and 2022. The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties.
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Loans and Allowance for Credit Losses - Loans |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses - Loans | Loans and Allowance for Credit Losses - LoansMid Penn adopted the amendments of FASB ASU 2016-13, on January 1, 2023. The amendments of ASU 2016-13 created FASB ASC Topic 326, "Financial Instruments – Credit Losses," which, among other things, replace much of the guidance and disclosures previously provided in FASB ASC Topic 310, "Receivables." The guidance in FASB ASC Topic 326 replaces the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit losses. In accordance with FASB ASC Subtopic 326-20, "Financial Instruments – Credit Losses – Measured at Amortized Cost," Mid Penn has developed an ACL methodology effective January 1, 2023, which replaces its previous allowance for loan losses methodology. See the section captioned "Allowance for Credit Losses, effective January 1, 2023" within this note for additional information regarding Mid Penn’s ACL. Mid Penn adopted FASB ASC Topic 326 using the modified retrospective approach prescribed by the amendments of ASU 2016-13; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current period presentation. Loans, net of unearned income, are summarized as follows by portfolio segment:
(1) In accordance with the guidance in FASB ASC Topic 326, Mid Penn redefined its loan portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. As such, $181.9 million of loans were reclassified from Commercial real estate to Residential mortgage upon adoption of CECL on January 1, 2023. Prior periods were not reclassified. Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees of $4.4 million and $3.9 million reduced the carrying value of loans as of June 30, 2023 and December 31, 2022, respectively. Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. At June 30, 2023, accrued interest receivable for loans totaled $16.5 million with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet. Past Due and Nonaccrual Loans The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of June 30, 2023 and December 31, 2022, are summarized as follows:
Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2023 and December 31, 2022 are summarized as follows:
The amount of interest income recognized on nonaccrual loans was approximately $281 thousand and $127 thousand during the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, the amount of interest income recognized on nonaccrual loans was approximately $463 thousand and $384 thousand, respectively. Credit Quality Indicators Mid Penn categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
Mid Penn had no loans classified as "doubtful" as of June 30, 2023 and December 31, 2022. Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Allowance for Credit Losses, effective January 1, 2023 Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20, as well as regulatory guidance from the FDIC, its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and credit quality. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: •Lending process •Concentrations of credit •Credit Quality The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. The following table presents the activity in the ACL - loans by portfolio segment for the three and six months ended June 30, 2023:
(1) Includes a $2.0 million initial provision for credit losses on non-PCD loans acquired in the Brunswick Acquisition. The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of June 30, 2023:
Allowance for Credit Losses, prior to January 1, 2023 The following table summarizes the allowance and recorded investments in loans receivable:
The information presented in the designated internal risk categories by portfolio segment table presented above is not required for periods prior to the adoption of CECL. The following table presents the most comparable required information for the prior period, internal credit risk ratings, for the indicated loan portfolio segments as of December 31, 2022:
Modifications to Borrowers Experiencing Financial Difficulty From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things. Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table:
The financial effects of the interest only loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added a weighted-average of 2.0 years to the life of the loans, which also reduced the monthly payment amounts for the borrowers.
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Derivative Financial Instruments |
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Derivative Financial Instruments | Derivative Financial Instruments Mid Penn manages its exposure to certain interest rate risks through the use of derivatives; however, none are entered into for speculative purposes. During the first six months of June 30, 2023, Mid Penn entered into outstanding derivative contracts designated as hedges. As of December 31, 2022, Mid Penn did not designate any derivative financial instruments as formal hedging relationships. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on the Consolidated Balance Sheets. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying, creditworthy commercial loan customers to meet their interest rate risk management needs. Mid Penn simultaneously enters into parallel interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of the offsetting customer and dealer counterparty swap agreements is that the customer pays a fixed rate of interest and Mid Penn receives a floating rate. Mid Penn’s loan-level interest rate swaps are considered derivatives, but are not accounted for using hedge accounting. Cash Flow Hedges of Interest Rate Risk Mid Penn’s objectives in using interest rate derivatives are to reduce volatility in net interest income and to manage its exposure to interest rate movements. To accomplish this objective, Mid Penn primarily uses interest rate swaps as part of its interest rate risk management strategy. During the first six months of 2023, Mid Penn entered into interest rate swaps designated as cash flow hedges to hedge the cash flows associated with existing brokered CDs. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the unrealized gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are made on Mid Penn’s variable-rate liabilities. During the next twelve months, Mid Penn estimates that an additional $2.9 million will be reclassified as a decrease to interest expense. The following table presents a summary of the notional amounts and fair values of derivative financial instruments:
The following table presents derivative financial instruments and the amount of the net fair value gains (losses) recognized within other noninterest income on the Consolidated Statement of Income:
The following table presents the effect of fair value and cash flow hedge accounting on AOCI:
The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the Consolidated Balance Sheets, and the collateral pledged to support such agreements are presented below:
(1) Included in other assets on the Consolidated Balance Sheet. (2) Included in other liabilities on the Consolidated Balance Sheet. (3) Included in cash and due from banks on the Consolidated Balance Sheet.
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Accumulated Other Comprehensive (Loss) Income |
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Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The changes in each component of accumulated other comprehensive loss, net of taxes, are as follows:
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement The Corporation uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no transfers of assets between fair value Level 1 and Level 2 during the three and six months ended June 30, 2023 or the year ended December 31, 2022. The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets.
The valuation methodologies and assumptions used to estimate the fair value for the items in the preceding tables are as follows: Available for sale investment securities - The fair value of equity and debt securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. Loans held for sale - This category includes mortgage loans held for sale that are measured at fair value. Fair values as of June 30, 2023 were measured as the price that secondary market investors were offering for loans with similar characteristics. Derivative assets - Interest rate swaps are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These markets do, however, have comparable, observable inputs in which an alternative pricing source values these assets in order to arrive at a fair market value. These characteristics classify interest rate swap agreements as Level 2. Mortgage banking derivatives represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of Mid Penn’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify interest rate swap agreements as Level 2. See "Note 5 - Derivative Financial Instruments," for additional information. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis:
Net loans - This category consists of loans that were individually evaluated for credit losses, net of the related ACL, and have been classified as Level 3 assets. In 2022, the amount shown is the balance of individually evaluated loans reporting a specific allocation or that have been partially charged-off. All of these loans are considered collateral-dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allowance allocation or not, are considered collateral- dependent. Mid Penn utilized Level 3 inputs such as independent appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. Foreclosed assets held for sale - Values are based on appraisals that consider the sales prices of property in the proximate vicinity. The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented:
(1)Long-term debt excludes finance lease obligations.
(1)Long-term debt excludes finance lease obligations. The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of June 30, 2023 and December 31, 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Guarantees and commitments to extend credit Mid Penn is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. The commitments include various guarantees and commitments to extend credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Mid Penn evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit and financial guarantees written are conditional commitments to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Mid Penn had $55.6 million and $57.2 million of standby letters of credit outstanding as of June 30, 2023 and December 31, 2022, respectively. Mid Penn does not anticipate any losses because of these transactions. The amount of the liability as of June 30, 2023 and December 31, 2022 for payment under standby letters of credit issued was not considered material. Mid Penn adopted FASB ASC Topic 326, effective January 1, 2023, which requires Mid Penn to estimate expected credit losses for OBS credit exposures which are not unconditionally cancellable. Mid Penn maintains a separate ACL on OBS credit exposures, including unfunded loan commitments and letters of credit, which is included in other liabilities on the accompanying Consolidated Balance Sheets. The ACL - OBS is adjusted as a provision for OBS commitments in noninterest expense. The estimate includes consideration of the likelihood that funding will occur, an estimate of exposure at default that is derived from utilization rate assumptions using a non-modeled approach, and PD and LGD estimates that are derived from the same models and approaches for the Mid Penn's other loan portfolio segments described in "Note 4 - Loans and Allowance for Credit Losses - Loans" above, as these unfunded commitments share similar risk characteristics with these loan portfolio segments. Changes in the ACL on OBS credit exposures were as follows for the period presented:
Low-income housing project commitments Mid Penn Bank has a limited partnership interest in a low-income housing project to construct 39 apartments and common amenities in Cumberland County, Pennsylvania. All of the units are expected to qualify for Federal LIHTC as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment is expected to be $10.8 million, which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year period. The project has been conditionally awarded $1.2 million in annual LIHTCs by the Pennsylvania Housing Finance Agency, with a total anticipated LIHTC amount of $12.0 million to be received by Mid Penn over the ten-year amortization period. Mid Penn’s commitment to purchase the limited partnership interest is conditional upon (i) the review and approval of all closing documents, (ii) an opinion letter for tax counsel to the Partnership that the project qualifies for the LIHTCs, and (iii) review and approval by Mid Penn of other documents it may deem necessary. Mid Penn assumed a commitment, as a result of the Riverview Acquisition, to purchase a limited partnership interest in a low-income housing project to preserve and rehabilitate three buildings consisting of 17 apartments and two commercial shops in Schuylkill County, Pennsylvania. All the units are expected to qualify for LIHTCs. Mid Penn’s limited partner capital contribution commitment is expected to be $4.4 million, which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year period. Additionally, the agreement commits Mid Penn to a construction loan in the maximum principal amount of $3.5 million, which will bear interest at 5.5% annum with a term of twenty-four months. The project has been conditionally awarded $484 thousand in annual LIHTCs by the Pennsylvania Housing Finance Agency, with a total anticipated LIHTC amount of $4.8 million to be received by Mid Penn over the ten-year amortization period. Mid Penn’s commitment to purchase the limited partnership interest is conditional upon (i) the review and approval of all closing documents, (ii) an opinion letter for tax counsel to the Partnership that the project qualifies for the LIHTCs, and (iii) review and approval by Mid Penn of other documents it may deem necessary. Litigation Mid Penn is subject to lawsuits and claims arising out of its normal conduct of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of Mid Penn.
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Debt |
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Maturities of Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term FHLB and Correspondent Bank Borrowings Total short-term borrowings were $112.4 million and $102.6 million as of June 30, 2023 and December 31, 2022, respectively. Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by the Bank’s investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $2.3 billion at June 30, 2023. The Bank had a short-term borrowing capacity from the FHLB as of June 30, 2023 up to the Bank’s unused borrowing capacity of $1.3 billion (equal to $1.6 billion of maximum borrowing capacity, less the aggregate amount of FHLB letter of credits securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35.0 million at June 30, 2023. No draws were made on these lines as of June 30, 2023 and December 31, 2022. Long-term Debt The following table presents a summary of long-term debt as of June 30, 2023 and December 31, 2022.
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Subordinated Debt and Trust Preferred Securities |
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Debt Disclosure [Abstract] | |
Subordinated Debt and Trust Preferred Securities | Subordinated Debt and Trust Preferred Securities Subordinated Debt Issued December 2017 On December 19, 2017, Mid Penn entered into agreements with investors to purchase $10.0 million aggregate principal amount of its subordinated notes due 2028 (the "2017 Notes"). The 2017 Notes were treated as Tier 2 capital for regulatory capital purposes. The 2017 Notes were redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Mid Penn redeemed the 2017 Notes in whole on April 17, 2023. Subordinated Debt Assumed November 2021 with the Riverview Acquisition On November 30, 2021, Mid Penn completed its acquisition of Riverview and assumed $25.0 million of subordinated notes (the "Riverview Notes"). In accordance with purchase accounting principles, the Riverview Notes were assigned a fair value premium of $2.3 million. The notes are treated as Tier 2 capital for regulatory reporting purposes. The Riverview Notes were entered into by Riverview on October 6, 2020 with certain qualified institutional buyers and accredited institutional investors. The Riverview Notes have a maturity date of October 15, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 5.75% per annum until October 15, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 563 bps, payable quarterly until maturity. Mid Penn may redeem the Riverview Notes at par, in whole or in part, at its option, anytime beginning on October 15, 2025. Subordinated Debt Issued December 2020 On December 22, 2020, Mid Penn entered into agreements for and sold, at 100% of their principal amount, an aggregate of $12.2 million of its subordinated notes due December 2030 (the "December 2020 Notes") on a private placement basis to accredited investors. The December 2020 Notes are treated as Tier 2 capital for regulatory capital purposes. The December 2020 Notes bear interest at a rate of 4.5% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the December 2020 Notes are floating will at no time be less than 4.5%. Interest is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2021. The December 2020 Notes will mature on December 31, 2030 and are redeemable, in whole or in part, without premium or penalty, on any interest payment date on or after December 31, 2025 and prior to December 31, 2030, subject to any required regulatory approvals. Additionally, if (i) all or any portion of the December 2020 Notes cease to be deemed Tier 2 Capital, (ii) interest on the December 2020 Notes fails to be deductible for United States federal income tax purposes, or (iii) Mid Penn will be considered an "investment company," Mid Penn may redeem the December 2020 Notes, in whole but not in part, by giving 10 days’ notice to the holders of the December 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the December 2020 Notes at 100% of the principal amount of the December 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the December 2020 Notes may not accelerate the maturity of the December 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or the Bank. Related parties held $750 thousand of the December 2020 Notes as of June 30, 2023 and December 31, 2022. Subordinated Debt Issued March 2020 On March 20, 2020, Mid Penn entered into agreements with accredited investors who purchased $15.0 million aggregate principal amount of its subordinated notes due March 2030 (the "March 2020 Notes"). As a result of Mid Penn’s merger with Riverview on November 30, 2021, $6.9 million of the March 2020 Notes balance was redeemed as Riverview was a holder of the March 2020 Notes. The balance of March 2020 Notes outstanding as of June 30, 2023 was $8.1 million. The March 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The March 2020 Notes bear interest at a rate of 4.0% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the March 2020 Notes are floating will at no time be less than 4.25%. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 30, June 30, September 30 and December 30. The March 2020 Notes will mature on March 30, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after March 30, 2025 and prior to March 30, 2030. Additionally, if all or any portion of the March 2020 Notes cease to be deemed Tier 2 Capital, Mid Penn may redeem, on any interest payment date, all or part of the 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the March 2020 Notes at 100% of the principal amount of the March 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the March 2020 Notes may not accelerate the maturity of the March 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or the Bank. Related parties held $1.7 million of the March 2020 Notes as of June 30, 2023 and December 31, 2022.
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Common Stock and Earnings Per Share |
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Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Earnings Per Share | Common Stock and Earnings Per Share Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program ("Program") initially effective March 19, 2020, and renewed through May 11, 2024 by Mid Penn’s Board of Directors on May 11, 2023. The Program authorizes the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock. Under the Program, Mid Penn conducts repurchases of its common stock through open market transactions (which may be by means of a trading plan adopted under SEC Rule 10b5-1) or in privately negotiated transactions. Repurchases under the Program are made at the discretion of management and are subject to market conditions and other factors. There is no guarantee as to the exact number of shares that Mid Penn may repurchase. The Program is able to be modified, suspended or terminated at any time, at Mid Penn’s discretion, based upon a number of factors, including liquidity, market conditions, the availability of alternative investment opportunities and other factors Mid Penn deems appropriate. The Program does not obligate Mid Penn to repurchase any shares. During the three months ended June 30, 2023, Mid Penn repurchased 204,379 shares of common stock at an average price of $22.41. As of June 30, 2023, Mid Penn had repurchased 412,722 shares of common stock at an average price of $22.92 per share under the Program. The Program had $5.5 million remaining available for repurchase as of June 30, 2023. Dividend Reinvestment Plan Under Mid Penn’s amended and restated DRIP, 300,000 shares of Mid Penn’s authorized but unissued common stock are reserved for issuance. The DRIP also allows for voluntary cash payments, within specified limits, to be used for the purchase of additional shares. Equity Incentive Plans On May 9, 2023, shareholders approved the 2023 Stock Incentive Plan, which authorizes Mid Penn to grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. The 2023 Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to incentivize the further success of the Company, and replaces the 2014 Restricted Stock Plan. The aggregate number of shares of common stock of the Company available for issuance under the Plan is 350,000 shares. As of June 30, 2023, a total of 217,514 restricted shares were granted under the 2014 Plan, of which 94,192 shares were unvested. The 2014 Plan shares granted and vested resulted in $252 thousand and $289 thousand in share-based compensation expense for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, the 2014 Plan shares granted and vested resulted in share-based compensation expense of $501 thousand and $457 thousand, respectively. Share-based compensation expense relating to restricted stock is calculated using grant date fair value and is recognized on a straight-line basis over the vesting periods of the awards. Restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over the vesting period and the expense is a component of salaries and benefits expense on the Consolidated Statement of Income. The employee grant vesting period is determined by the terms of each respective grant, with vesting periods generally between and four years. Restricted shares granted to directors have a twelve-month vesting period, and the expense is a component of directors’ fees and benefits within the other expense line item on the Consolidated Statement of Income. The following data shows the amounts used in computing basic and diluted earnings per common share:
There were no antidilutive instruments at June 30, 2023 and 2022.
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
CECL Adoption and Updated Significant Accounting Policy | CECL Adoption and Updated Significant Accounting Policy On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology, and is referred to as CECL. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loans and HTM debt securities. It also applies to OBS credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASC Topic 842. The Corporation adopted CECL using the modified retrospective method for all financial assets measured at amortized cost, net of investments in leases and OBS credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL, while prior period results are reported in accordance with the previously applicable incurred loss methodology. The Corporation recorded an overall increase of $15.0 million to the ACL on January 1, 2023 as a result of the adoption of CECL. Retained earnings decreased $11.5 million and deferred tax assets increased by $3.1 million. Included in the $15.0 million increase to the ACL was $3.1 million for certain OBS credit exposures that were previously recognized in other liabilities before the adoption of CECL. On January 1, 2023, the Corporation adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification ("ASC") Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. See "Note 4 - Loans and Allowance for Credit Losses - Loans" for the new financial statement disclosures applicable under this update. The updates to the significant accounting policies related to CECL are further discussed in "Note 3 - Investment Securities", "Note 4 - Loans and Allowance for Credit Losses - Loans" and "Note 8 - Commitments and Contingencies". All other significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the 2022 Annual Report. Those significant accounting policies are unchanged at June 30, 2023. Accounting Standards Pending Adoption ASU No. 2023-02: The FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. The Corporation does not expect the adoption of ASU No. 2023-02 to have a material impact on its consolidated financial statements.
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AFS and HTM Securities | AFS Securities ASU 2016-13 makes targeted improvements to the accounting for credit losses on AFS securities. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike HTM securities, AFS securities are evaluated on an individual level and pooling of securities is not allowed. Quarterly, Mid Penn evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, Mid Penn performs further analysis as outlined below: •Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. •The securities that violate the credit loss triggers above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. •If Mid Penn determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss Mid Penn records will be limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by a reputable third-party. HTM Securities ASU 2016-13 requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risks exist. Mid Penn uses several levels of segmentation in order to measure expected credit losses: •The portfolio is segmented into agency and non-agency securities. •The non-agency securities are separated into state and political subdivision obligations and corporate debt securities. Each individual segment is categorized by third-party credit ratings. As discussed above, Mid Penn has determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero, which include debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. This assumption will be reviewed and attested to quarterly.
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Collateral Dependent Loans | Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Allowance for Credit Losses, effective January 1, 2023 Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20, as well as regulatory guidance from the FDIC, its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and credit quality. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: •Lending process •Concentrations of credit •Credit Quality The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off.
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Fair Value Measurement | The Corporation uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued.
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Business Combination (Tables) |
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Summary of the Final Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | Estimated fair values of the assets acquired and liabilities assumed in the Brunswick Acquisition as of the closing date are as follows:
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Investment Securities (Tables) |
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Securities Financing Transactions Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The amortized cost and estimated fair value of investment securities for the periods presented:
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Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position | The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the periods presented:
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Investments Classified by Contractual Maturity Date | The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties.
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Loans and Allowance for Credit Losses - Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | Loans, net of unearned income, are summarized as follows by portfolio segment:
(1) In accordance with the guidance in FASB ASC Topic 326, Mid Penn redefined its loan portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. As such, $181.9 million of loans were reclassified from Commercial real estate to Residential mortgage upon adoption of CECL on January 1, 2023. Prior periods were not reclassified. Mid Penn categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
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Loan Portfolio Summarized by the Past Due Status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of June 30, 2023 and December 31, 2022, are summarized as follows:
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Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration | Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2023 and December 31, 2022 are summarized as follows:
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Allowance and Recorded Investment in Financing Receivables | The following table presents the activity in the ACL - loans by portfolio segment for the three and six months ended June 30, 2023:
(1) Includes a $2.0 million initial provision for credit losses on non-PCD loans acquired in the Brunswick Acquisition. The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of June 30, 2023:
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Financing Receivable, Allowance for Credit Loss Related to Off-Balance Sheet Credit Exposures | Changes in the ACL on OBS credit exposures were as follows for the period presented:
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Troubled Debt Restructurings | Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments | The following table presents a summary of the notional amounts and fair values of derivative financial instruments:
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Schedule of Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income | The following table presents derivative financial instruments and the amount of the net fair value gains (losses) recognized within other noninterest income on the Consolidated Statement of Income:
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the effect of fair value and cash flow hedge accounting on AOCI:
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Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values | The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the Consolidated Balance Sheets, and the collateral pledged to support such agreements are presented below:
(1) Included in other assets on the Consolidated Balance Sheet. (2) Included in other liabilities on the Consolidated Balance Sheet. (3) Included in cash and due from banks on the Consolidated Balance Sheet.
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Accumulated Other Comprehensive (Loss) Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The changes in each component of accumulated other comprehensive loss, net of taxes, are as follows:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets.
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Fair Value Measurements, Nonrecurring | The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis:
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Fair Value, by Balance Sheet Grouping | The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented:
(1)Long-term debt excludes finance lease obligations.
(1)Long-term debt excludes finance lease obligations.
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Loss Related to Off-Balance Sheet Credit Exposures | Changes in the ACL on OBS credit exposures were as follows for the period presented:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt Outstanding by Due Date | The following table presents a summary of long-term debt as of June 30, 2023 and December 31, 2022.
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Common Stock and Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following data shows the amounts used in computing basic and diluted earnings per common share:
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Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
Segment
|
Mar. 31, 2023
USD ($)
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Dec. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Number of reportable segments | Segment | 1 | |||||||
Retained earnings | $ 525,888 | $ 510,793 | $ 512,099 | $ 495,835 | $ 494,161 | $ 490,076 | ||
Deferred income taxes | 24,309 | 13,674 | ||||||
Off-balance-sheet credit exposure | 3,791 | 3,502 | 85 | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for loan losses | 15,000 | |||||||
Retained earnings | [1] | (11,548) | ||||||
Deferred income taxes | 3,100 | |||||||
Off-balance-sheet credit exposure | 3,077 | |||||||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained earnings | $ 131,271 | $ 129,617 | 133,114 | $ 108,265 | $ 99,206 | $ 91,043 | ||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained earnings | [1] | $ (11,548) | ||||||
|
Business Combination - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
May 19, 2023
USD ($)
branch
shares
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Business Acquisition [Line Items] | ||||||
Goodwill | $ 129,403 | $ 129,403 | $ 114,231 | |||
Merger and acquisition | 4,992 | $ 0 | 5,216 | $ 0 | ||
Purchase credit deteriorated loans | 336 | 336 | ||||
Brunswick Bancorp Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Additional branches | branch | 5 | |||||
Equity interest issued or issuable, number of shares (in shares) | shares | 849,510 | |||||
Payments to acquire businesses gross | $ 27,565 | |||||
Consideration transferred | 45,700 | |||||
Goodwill | 15,172 | |||||
Goodwill, expected tax deductible amount | 0 | |||||
Merger and acquisition | $ 7,900 | $ 8,200 | ||||
Amount at purchase price | 18,700 | |||||
Purchase credit deteriorated loans | 355 | |||||
Amount at par value | 16,600 | |||||
Discount (premium) | 2,100 | |||||
Provision expense | $ 2,000 |
Business Combination - Estimated Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
May 19, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|||
Assets acquired: | ||||||
Goodwill | $ 129,403 | $ 114,231 | ||||
Deposits: | ||||||
Stock issued in business combination | [1] | $ 18,095 | $ 0 | |||
Brunswick Bancorp Acquisition | ||||||
Assets acquired: | ||||||
Cash and cash equivalents | $ 21,029 | |||||
Federal funds sold | 7,604 | |||||
Investment securities | 2,174 | |||||
Loans | 324,471 | |||||
Goodwill | 15,172 | |||||
Core deposit intangible | 999 | |||||
Premises and equipment | 5,315 | |||||
Cash surrender value of life insurance | 3,361 | |||||
Deferred income taxes | 6,792 | |||||
Accrued interest receivable | 1,171 | |||||
Other assets | 3,860 | |||||
Total assets acquired | 391,948 | |||||
Deposits: | ||||||
Noninterest-bearing demand | 68,545 | |||||
Interest-bearing demand | 5,345 | |||||
Money Market | 47,362 | |||||
Savings | 14,203 | |||||
Time | 147,164 | |||||
Long-term debt | 60,137 | |||||
Accrued interest payable | 1,911 | |||||
Other liabilities | 1,621 | |||||
Total liabilities assumed | 346,288 | |||||
Consideration paid | 45,660 | |||||
Payments to acquire businesses gross | 27,565 | |||||
Stock issued in business combination | $ 18,095 | |||||
|
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Available-for-sale | ||
Amortized Cost | $ 254,863 | $ 262,342 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 26,089 | 24,464 |
Estimated Fair Value | 228,774 | 237,878 |
Held-to-maturity | ||
Amortized Cost | 404,831 | 399,494 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 49,044 | 50,989 |
Estimated Fair Value | 355,789 | 348,505 |
Amortized Cost | 659,694 | 661,836 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 75,133 | 75,453 |
Estimated Fair Value | 584,563 | 586,383 |
U.S. Treasury and U.S. government agencies | ||
Available-for-sale | ||
Amortized Cost | 36,581 | 36,528 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,654 | 1,614 |
Estimated Fair Value | 34,927 | 34,914 |
Held-to-maturity | ||
Amortized Cost | 245,737 | 245,671 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 33,401 | 34,834 |
Estimated Fair Value | 212,336 | 210,837 |
Mortgage-backed U.S. government agencies | ||
Available-for-sale | ||
Amortized Cost | 177,964 | 185,993 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 19,264 | 19,078 |
Estimated Fair Value | 158,700 | 166,915 |
Held-to-maturity | ||
Amortized Cost | 47,129 | 50,710 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 6,379 | 6,676 |
Estimated Fair Value | 40,750 | 44,034 |
State and political subdivision obligations | ||
Available-for-sale | ||
Amortized Cost | 4,343 | 4,354 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 782 | 815 |
Estimated Fair Value | 3,561 | 3,539 |
Held-to-maturity | ||
Amortized Cost | 86,486 | 87,125 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 8,047 | 8,345 |
Estimated Fair Value | 78,441 | 78,780 |
Corporate debt securities | ||
Available-for-sale | ||
Amortized Cost | 35,975 | 35,467 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,389 | 2,957 |
Estimated Fair Value | 31,586 | 32,510 |
Held-to-maturity | ||
Amortized Cost | 25,479 | 15,988 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,217 | 1,134 |
Estimated Fair Value | $ 24,262 | $ 14,854 |
Investment Securities - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Schedule of Investments [Line Items] | |||||
AFS accrued interest | $ 1,100 | $ 1,100 | |||
HTM, at amortized cost (fair value $355,789 and $348,505) | 404,831 | 404,831 | $ 399,494 | ||
HTM accrued interest | 1,800 | 1,800 | |||
Available-for-sale securities pledged as collateral | 406,000 | 406,000 | 338,800 | ||
Net gains | 0 | $ 0 | 0 | $ 0 | |
FHLB | |||||
Schedule of Investments [Line Items] | |||||
Letter of credit outstanding, amount | $ 175,000 | $ 175,000 | $ 189,000 |
Investment Securities - Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position (Details) |
Jun. 30, 2023
USD ($)
security
|
Dec. 31, 2022
USD ($)
security
|
---|---|---|
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 34 | 106 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 81,359,000 | $ 194,377,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 3,979,000 | $ 16,314,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 102 | 30 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 144,242,000 | $ 40,250,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 22,110,000 | $ 8,150,000 |
Available-for-sale securities, Total: Number of Securities | security | 136 | 136 |
Available-for-sale securities, Total: Fair Value | $ 225,601,000 | $ 234,627,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 26,089,000 | $ 24,464,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 85 | 283 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 39,508,000 | $ 178,268,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 1,266,000 | $ 18,894,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 333 | 138 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 300,989,000 | $ 165,857,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 47,778,000 | $ 32,095,000 |
Held-to-maturity securities, Total: Number of Securities | security | 418 | 421 |
Held-to-maturity securities, Total: Fair Value | $ 340,497,000 | $ 344,125,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 49,044,000 | $ 50,989,000 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 119 | 389 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Fair Value | $ 120,867,000 | $ 372,645,000 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 5,245,000 | $ 35,208,000 |
Available-for-sale securities and Held-to-maturity securities,, 12 Months or More: Number of Securities | security | 435 | 168 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Fair Value | $ 445,231,000 | $ 206,107,000 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 69,888,000 | $ 40,245,000 |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 554 | 557 |
Available-for-sale securities and Held-to-maturity securities, Total: Fair Value | $ 566,098,000 | $ 578,752,000 |
Available-for-sale securities and Held-to-maturity securities, Total: Unrealized Losses | $ 75,133,000 | $ 75,453,000 |
U.S. Treasury and U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 8 | 19 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 17,064,000 | $ 34,914,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 518,000 | $ 1,614,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 11 | 0 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 17,863,000 | $ 0 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 1,136,000 | $ 0 |
Available-for-sale securities, Total: Number of Securities | security | 19 | 19 |
Available-for-sale securities, Total: Fair Value | $ 34,927,000 | $ 34,914,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,654,000 | $ 1,614,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 7 | 54 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 12,092,000 | $ 84,946,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 457,000 | $ 10,093,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 138 | 91 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 200,244,000 | $ 125,891,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 32,944,000 | $ 24,741,000 |
Held-to-maturity securities, Total: Number of Securities | security | 145 | 145 |
Held-to-maturity securities, Total: Fair Value | $ 212,336,000 | $ 210,837,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 33,401,000 | $ 34,834,000 |
Mortgage-backed U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 23 | 69 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 55,079,000 | $ 131,879,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 2,769,000 | $ 11,876,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 70 | 24 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 103,621,000 | $ 35,036,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 16,495,000 | $ 7,202,000 |
Available-for-sale securities, Total: Number of Securities | security | 93 | 93 |
Available-for-sale securities, Total: Fair Value | $ 158,700,000 | $ 166,915,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 19,264,000 | $ 19,078,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 1 | 40 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 285,000 | $ 13,866,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 16,000 | $ 1,071,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 63 | 24 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 40,465,000 | $ 30,168,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 6,363,000 | $ 5,605,000 |
Held-to-maturity securities, Total: Number of Securities | security | 64 | 64 |
Held-to-maturity securities, Total: Fair Value | $ 40,750,000 | $ 44,034,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 6,379,000 | $ 6,676,000 |
State and political subdivision obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | 6 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 2,521,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 671,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 8 | 2 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 3,561,000 | $ 1,018,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 782,000 | $ 144,000 |
Available-for-sale securities, Total: Number of Securities | security | 8 | 8 |
Available-for-sale securities, Total: Fair Value | $ 3,561,000 | $ 3,539,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 782,000 | $ 815,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 76 | 185 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 26,201,000 | $ 73,735,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 730,000 | $ 7,413,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 125 | 18 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 51,398,000 | $ 4,616,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 7,317,000 | $ 932,000 |
Held-to-maturity securities, Total: Number of Securities | security | 201 | 203 |
Held-to-maturity securities, Total: Fair Value | $ 77,599,000 | $ 78,351,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 8,047,000 | $ 8,345,000 |
Corporate debt securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 3 | 12 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 9,216,000 | $ 25,063,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 692,000 | $ 2,153,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 13 | 4 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 19,197,000 | $ 4,196,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 3,697,000 | $ 804,000 |
Available-for-sale securities, Total: Number of Securities | security | 16 | 16 |
Available-for-sale securities, Total: Fair Value | $ 28,413,000 | $ 29,259,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 4,389,000 | $ 2,957,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 1 | 4 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 930,000 | $ 5,721,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 63,000 | $ 317,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 7 | 5 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 8,882,000 | $ 5,182,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 1,154,000 | $ 817,000 |
Held-to-maturity securities, Total: Number of Securities | security | 8 | 9 |
Held-to-maturity securities, Total: Fair Value | $ 9,812,000 | $ 10,903,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 1,217,000 | $ 1,134,000 |
Investment Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Amortized Cost | ||
Due in 1 year or less | $ 5,245 | |
Due after 1 year but within 5 years | 40,345 | |
Due after 5 years but within 10 years | 28,447 | |
Due after 10 years | 2,862 | |
Available-for-sale securities, amortized cost basis, Total | 76,899 | |
Amortized Cost | 254,863 | $ 262,342 |
Fair Value | ||
Due in 1 year or less | 5,141 | |
Due after 1 year but within 5 years | 38,504 | |
Due after 5 years but within 10 years | 24,115 | |
Due after 10 years | 2,314 | |
Available-for-sale securities, fair value, Total | 70,074 | |
Available-for-sale securities, fair value | 228,774 | 237,878 |
Amortized Cost | ||
Due in 1 year or less | 4,958 | |
Due after 1 year but within 5 years | 103,441 | |
Due after 5 years but within 10 years | 208,200 | |
Due after 10 years | 41,103 | |
Held-to-maturity securities, amortized cost | 357,702 | |
Amortized Cost | 404,831 | 399,494 |
Fair Value | ||
Due in 1 year or less | 4,913 | |
Due after 1 year but within 5 years | 97,579 | |
Due after 5 years but within 10 years | 178,786 | |
Due after 10 years | 33,761 | |
Held-to-maturity securities, fair value | 315,039 | |
Held-to-maturity, Fair Value | 355,789 | $ 348,505 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 177,964 | |
Fair Value | ||
Mortgage-backed securities | 158,700 | |
Amortized Cost | ||
Mortgage-backed securities | 47,129 | |
Fair Value | ||
Mortgage-backed securities | $ 40,750 |
Loans and Allowance for Credit Losses - Loans - Classes Of The Loan Portfolio (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | $ 4,034,510 | $ 3,514,119 | $ 3,171,307 |
Commercial portfolio | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 2,145,272 | 2,052,934 | 1,821,729 |
Commercial portfolio | Commercial real estate | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | (181,900) | ||
Commercial portfolio | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 635,929 | 596,042 | 549,374 |
Commercial portfolio | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 515,398 | 441,246 | 374,896 |
Consumer portfolio | Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 730,176 | 416,221 | 416,032 |
Consumer portfolio | Residential mortgage | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 181,900 | ||
Consumer portfolio | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | $ 7,735 | $ 7,676 | $ 9,276 |
Loans and Allowance for Credit Losses - Loans - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||
Net deferred loan fees | $ 4,400 | $ 4,400 | $ 3,900 | ||
Accrued interest | 16,500 | 16,500 | |||
Interest income on nonaccrual loans | $ 281 | $ 127 | $ 463 | $ 384 | |
Weighted average term increase from modification | 2 years |
Loans and Allowance for Credit Losses - Loans - Loan Portfolio Summarized By The Past Due Status (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | $ 4,034,510 | $ 3,514,119 | $ 3,171,307 |
Loans Receivable > 90 Days and Accruing | 9 | 654 | |
Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 4,700 | ||
Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 18,682 | 16,263 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 9,897 | 10,029 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 109 | 1,205 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 8,676 | 5,029 | |
Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 4,015,828 | 3,497,856 | |
Commercial portfolio | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,145,272 | 2,052,934 | 1,821,729 |
Commercial portfolio | Commercial real estate | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,145,272 | 2,050,397 | |
Loans Receivable > 90 Days and Accruing | 1 | 0 | |
Commercial portfolio | Commercial real estate | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,537 | 2,109 | |
Loans Receivable > 90 Days and Accruing | 0 | ||
Commercial portfolio | Commercial real estate | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 6,785 | 3,230 | |
Commercial portfolio | Commercial real estate | Total Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 904 | ||
Commercial portfolio | Commercial real estate | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 3,688 | 1,792 | |
Commercial portfolio | Commercial real estate | 30-59 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 78 | ||
Commercial portfolio | Commercial real estate | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 0 | |
Commercial portfolio | Commercial real estate | 60-89 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Commercial real estate | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 3,097 | 1,438 | |
Commercial portfolio | Commercial real estate | Greater than 90 Days | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 826 | ||
Commercial portfolio | Commercial real estate | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,138,487 | 2,047,167 | |
Commercial portfolio | Commercial real estate | Current | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 1,633 | ||
Commercial portfolio | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 635,929 | 596,042 | 549,374 |
Commercial portfolio | Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 635,929 | 596,042 | |
Loans Receivable > 90 Days and Accruing | 1 | 654 | |
Commercial portfolio | Commercial and industrial | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 0 | |
Loans Receivable > 90 Days and Accruing | 0 | ||
Commercial portfolio | Commercial and industrial | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 4,528 | 3,665 | |
Commercial portfolio | Commercial and industrial | Total Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Commercial and industrial | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,985 | 1,808 | |
Commercial portfolio | Commercial and industrial | 30-59 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Commercial and industrial | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 3 | |
Commercial portfolio | Commercial and industrial | 60-89 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Commercial and industrial | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 1,543 | 1,854 | |
Commercial portfolio | Commercial and industrial | Greater than 90 Days | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Commercial and industrial | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 631,401 | 592,377 | |
Commercial portfolio | Commercial and industrial | Current | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 515,398 | 441,246 | 374,896 |
Commercial portfolio | Construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 515,398 | 441,246 | |
Loans Receivable > 90 Days and Accruing | 0 | 0 | |
Commercial portfolio | Construction | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 1,221 | |
Loans Receivable > 90 Days and Accruing | 0 | ||
Commercial portfolio | Construction | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,257 | 2,258 | |
Commercial portfolio | Construction | Total Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Construction | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 2,258 | |
Commercial portfolio | Construction | 30-59 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Construction | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 0 | |
Commercial portfolio | Construction | 60-89 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Construction | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 2,257 | 0 | |
Commercial portfolio | Construction | Greater than 90 Days | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Commercial portfolio | Construction | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 513,141 | 438,988 | |
Commercial portfolio | Construction | Current | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Residential mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 730,176 | 416,221 | 416,032 |
Consumer portfolio | Residential mortgage | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 730,176 | 415,081 | |
Loans Receivable > 90 Days and Accruing | 7 | 0 | |
Consumer portfolio | Residential mortgage | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 1,140 | 1,370 | |
Loans Receivable > 90 Days and Accruing | 0 | ||
Consumer portfolio | Residential mortgage | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 5,094 | 5,451 | |
Consumer portfolio | Residential mortgage | Total Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 692 | ||
Consumer portfolio | Residential mortgage | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 3,209 | 3,826 | |
Consumer portfolio | Residential mortgage | 30-59 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 223 | ||
Consumer portfolio | Residential mortgage | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 106 | 955 | |
Consumer portfolio | Residential mortgage | 60-89 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 228 | ||
Consumer portfolio | Residential mortgage | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 1,779 | 670 | |
Consumer portfolio | Residential mortgage | Greater than 90 Days | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 241 | ||
Consumer portfolio | Residential mortgage | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 725,082 | 409,630 | |
Consumer portfolio | Residential mortgage | Current | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 448 | ||
Consumer portfolio | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 7,735 | 7,676 | 9,276 |
Consumer portfolio | Consumer | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 7,735 | 7,676 | |
Loans Receivable > 90 Days and Accruing | 0 | 0 | |
Consumer portfolio | Consumer | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | $ 0 | |
Loans Receivable > 90 Days and Accruing | 0 | ||
Consumer portfolio | Consumer | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 18 | 63 | |
Consumer portfolio | Consumer | Total Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Consumer | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 15 | 44 | |
Consumer portfolio | Consumer | 30-59 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Consumer | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 3 | 19 | |
Consumer portfolio | Consumer | 60-89 Days Past Due | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Consumer | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | 0 | |
Consumer portfolio | Consumer | Greater than 90 Days | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Consumer | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | $ 7,717 | 7,613 | |
Consumer portfolio | Consumer | Current | Acquired with credit deterioration | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Credit Losses - Loans - Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | $ 1,797 | |
Financing receivable, no allowance | 13,671 | |
Financing receivable, recorded investment, nonaccrual status | 15,468 | $ 8,195 |
Commercial portfolio | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 466 | |
Financing receivable, no allowance | 8,079 | |
Financing receivable, recorded investment, nonaccrual status | 8,545 | 4,864 |
Commercial portfolio | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 1,329 | |
Financing receivable, no allowance | 214 | |
Financing receivable, recorded investment, nonaccrual status | 1,543 | 1,222 |
Commercial portfolio | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 0 | |
Financing receivable, no allowance | 2,256 | |
Financing receivable, recorded investment, nonaccrual status | 2,256 | 0 |
Consumer portfolio | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 2 | |
Financing receivable, no allowance | 3,122 | |
Financing receivable, recorded investment, nonaccrual status | 3,124 | 1,698 |
Consumer portfolio | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 0 | |
Financing receivable, no allowance | 0 | |
Financing receivable, recorded investment, nonaccrual status | $ 0 | $ 411 |
Loans and Allowance for Credit Losses - Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | $ 409,685 | $ 409,685 | ||||
2022 | 998,052 | 998,052 | ||||
2021 | 655,448 | 655,448 | ||||
2020 | 464,316 | 464,316 | ||||
2019 | 297,898 | 297,898 | ||||
Prior | 875,582 | 875,582 | ||||
Revolving Loans Amortized Cost Basis | 333,529 | 333,529 | ||||
Loans, net of unearned interest | 4,034,510 | 4,034,510 | $ 3,514,119 | $ 3,171,307 | ||
Gross charge offs | ||||||
Charge-offs | (174) | $ (9) | (324) | $ (66) | ||
Current period recoveries | ||||||
Recoveries | 4 | 13 | 41 | 120 | ||
Performing Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 104,003 | 104,003 | ||||
2022 | 137,459 | 137,459 | ||||
2021 | 91,022 | 91,022 | ||||
2020 | 91,113 | 91,113 | ||||
2019 | 30,772 | 30,772 | ||||
Prior | 198,295 | 198,295 | ||||
Revolving Loans Amortized Cost Basis | 82,123 | 82,123 | ||||
Loans, net of unearned interest | 734,787 | 734,787 | ||||
Nonperforming Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 38 | 38 | ||||
2020 | 227 | 227 | ||||
2019 | 20 | 20 | ||||
Prior | 2,824 | 2,824 | ||||
Revolving Loans Amortized Cost Basis | 15 | 15 | ||||
Loans, net of unearned interest | 3,124 | 3,124 | ||||
Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 305,481 | 305,481 | ||||
2022 | 858,004 | 858,004 | ||||
2021 | 563,496 | 563,496 | ||||
2020 | 369,770 | 369,770 | ||||
2019 | 259,014 | 259,014 | ||||
Prior | 641,281 | 641,281 | ||||
Revolving Loans Amortized Cost Basis | 238,995 | 238,995 | ||||
Loans, net of unearned interest | 3,236,041 | 3,236,041 | 3,456,553 | |||
Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 171 | 171 | ||||
2021 | 892 | 892 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 15,540 | 15,540 | ||||
Revolving Loans Amortized Cost Basis | 5,988 | 5,988 | ||||
Loans, net of unearned interest | 22,591 | 22,591 | 21,897 | |||
Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 201 | 201 | ||||
2022 | 2,418 | 2,418 | ||||
2021 | 0 | 0 | ||||
2020 | 3,206 | 3,206 | ||||
2019 | 8,092 | 8,092 | ||||
Prior | 17,642 | 17,642 | ||||
Revolving Loans Amortized Cost Basis | 6,408 | 6,408 | ||||
Loans, net of unearned interest | 37,967 | 37,967 | 35,669 | |||
Commercial portfolio | Commercial real estate | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 155,143 | 155,143 | ||||
2022 | 545,978 | 545,978 | ||||
2021 | 325,310 | 325,310 | ||||
2020 | 299,808 | 299,808 | ||||
2019 | 196,907 | 196,907 | ||||
Prior | 587,898 | 587,898 | ||||
Revolving Loans Amortized Cost Basis | 34,228 | 34,228 | ||||
Loans, net of unearned interest | 2,145,272 | 2,145,272 | 2,052,934 | 1,821,729 | ||
Gross charge offs | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | (16) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Charge-offs | 0 | 0 | (16) | 0 | ||
Current period recoveries | ||||||
Recoveries | 0 | 0 | 0 | 65 | ||
Net charge offs | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | (16) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Net loans (charged off) recovered | (16) | |||||
Commercial portfolio | Commercial real estate | Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 154,942 | 154,942 | ||||
2022 | 543,710 | 543,710 | ||||
2021 | 325,310 | 325,310 | ||||
2020 | 296,602 | 296,602 | ||||
2019 | 194,714 | 194,714 | ||||
Prior | 561,115 | 561,115 | ||||
Revolving Loans Amortized Cost Basis | 31,100 | 31,100 | ||||
Loans, net of unearned interest | 2,107,493 | 2,107,493 | 2,018,088 | |||
Commercial portfolio | Commercial real estate | Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 13,246 | 13,246 | ||||
Revolving Loans Amortized Cost Basis | 0 | 0 | ||||
Loans, net of unearned interest | 13,246 | 13,246 | 12,325 | |||
Commercial portfolio | Commercial real estate | Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 201 | 201 | ||||
2022 | 2,268 | 2,268 | ||||
2021 | 0 | 0 | ||||
2020 | 3,206 | 3,206 | ||||
2019 | 2,193 | 2,193 | ||||
Prior | 13,537 | 13,537 | ||||
Revolving Loans Amortized Cost Basis | 3,128 | 3,128 | ||||
Loans, net of unearned interest | 24,533 | 24,533 | 22,521 | |||
Commercial portfolio | Commercial and industrial | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 87,344 | 87,344 | ||||
2022 | 116,267 | 116,267 | ||||
2021 | 86,911 | 86,911 | ||||
2020 | 33,854 | 33,854 | ||||
2019 | 59,904 | 59,904 | ||||
Prior | 69,555 | 69,555 | ||||
Revolving Loans Amortized Cost Basis | 182,094 | 182,094 | ||||
Loans, net of unearned interest | 635,929 | 635,929 | 596,042 | 549,374 | ||
Gross charge offs | ||||||
2023 | 0 | |||||
2022 | (100) | |||||
2021 | 0 | |||||
2020 | (111) | |||||
2019 | 0 | |||||
Prior | (9) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Charge-offs | (109) | 0 | (220) | 0 | ||
Current period recoveries | ||||||
Recoveries | 0 | 0 | 0 | 13 | ||
Net charge offs | ||||||
2023 | 0 | |||||
2022 | (100) | |||||
2021 | 0 | |||||
2020 | (111) | |||||
2019 | 0 | |||||
Prior | (9) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Net loans (charged off) recovered | (220) | |||||
Commercial portfolio | Commercial and industrial | Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 87,344 | 87,344 | ||||
2022 | 115,946 | 115,946 | ||||
2021 | 86,019 | 86,019 | ||||
2020 | 33,854 | 33,854 | ||||
2019 | 54,005 | 54,005 | ||||
Prior | 65,412 | 65,412 | ||||
Revolving Loans Amortized Cost Basis | 174,518 | 174,518 | ||||
Loans, net of unearned interest | 617,098 | 617,098 | 582,540 | |||
Commercial portfolio | Commercial and industrial | Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 171 | 171 | ||||
2021 | 892 | 892 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 2,294 | 2,294 | ||||
Revolving Loans Amortized Cost Basis | 4,296 | 4,296 | ||||
Loans, net of unearned interest | 7,653 | 7,653 | 4,212 | |||
Commercial portfolio | Commercial and industrial | Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 150 | 150 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 5,899 | 5,899 | ||||
Prior | 1,849 | 1,849 | ||||
Revolving Loans Amortized Cost Basis | 3,280 | 3,280 | ||||
Loans, net of unearned interest | 11,178 | 11,178 | 9,290 | |||
Commercial portfolio | Construction | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 63,195 | 63,195 | ||||
2022 | 198,348 | 198,348 | ||||
2021 | 152,167 | 152,167 | ||||
2020 | 39,314 | 39,314 | ||||
2019 | 10,295 | 10,295 | ||||
Prior | 17,010 | 17,010 | ||||
Revolving Loans Amortized Cost Basis | 35,069 | 35,069 | ||||
Loans, net of unearned interest | 515,398 | 515,398 | 441,246 | 374,896 | ||
Gross charge offs | ||||||
Charge-offs | 0 | 0 | 0 | 0 | ||
Current period recoveries | ||||||
Recoveries | 0 | 0 | 0 | 24 | ||
Commercial portfolio | Construction | Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 63,195 | 63,195 | ||||
2022 | 198,348 | 198,348 | ||||
2021 | 152,167 | 152,167 | ||||
2020 | 39,314 | 39,314 | ||||
2019 | 10,295 | 10,295 | ||||
Prior | 14,754 | 14,754 | ||||
Revolving Loans Amortized Cost Basis | 33,377 | 33,377 | ||||
Loans, net of unearned interest | 511,450 | 511,450 | 438,990 | |||
Commercial portfolio | Construction | Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Revolving Loans Amortized Cost Basis | 1,692 | 1,692 | ||||
Loans, net of unearned interest | 1,692 | 1,692 | 2,256 | |||
Commercial portfolio | Construction | Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 2,256 | 2,256 | ||||
Revolving Loans Amortized Cost Basis | 0 | 0 | ||||
Loans, net of unearned interest | 2,256 | 2,256 | 0 | |||
Consumer portfolio | Residential mortgage | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 102,765 | 102,765 | ||||
2022 | 136,479 | 136,479 | ||||
2021 | 90,183 | 90,183 | ||||
2020 | 90,975 | 90,975 | ||||
2019 | 30,505 | 30,505 | ||||
Prior | 200,682 | 200,682 | ||||
Revolving Loans Amortized Cost Basis | 78,587 | 78,587 | ||||
Loans, net of unearned interest | 730,176 | 730,176 | 416,221 | 416,032 | ||
Gross charge offs | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | (4) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Charge-offs | 0 | 0 | (4) | 0 | ||
Current period recoveries | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 30 | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Recoveries | 0 | 3 | 30 | 4 | ||
Net charge offs | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 26 | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Net loans (charged off) recovered | 26 | |||||
Consumer portfolio | Residential mortgage | Performing Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 102,765 | 102,765 | ||||
2022 | 136,479 | 136,479 | ||||
2021 | 90,145 | 90,145 | ||||
2020 | 90,748 | 90,748 | ||||
2019 | 30,485 | 30,485 | ||||
Prior | 197,858 | 197,858 | ||||
Revolving Loans Amortized Cost Basis | 78,572 | 78,572 | ||||
Loans, net of unearned interest | 727,052 | 727,052 | ||||
Consumer portfolio | Residential mortgage | Nonperforming Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 38 | 38 | ||||
2020 | 227 | 227 | ||||
2019 | 20 | 20 | ||||
Prior | 2,824 | 2,824 | ||||
Revolving Loans Amortized Cost Basis | 15 | 15 | ||||
Loans, net of unearned interest | 3,124 | 3,124 | ||||
Consumer portfolio | Residential mortgage | Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | 409,259 | |||||
Consumer portfolio | Residential mortgage | Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | 3,104 | |||||
Consumer portfolio | Residential mortgage | Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | 3,858 | |||||
Consumer portfolio | Consumer | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 1,238 | 1,238 | ||||
2022 | 980 | 980 | ||||
2021 | 877 | 877 | ||||
2020 | 365 | 365 | ||||
2019 | 287 | 287 | ||||
Prior | 437 | 437 | ||||
Revolving Loans Amortized Cost Basis | 3,551 | 3,551 | ||||
Loans, net of unearned interest | 7,735 | 7,735 | 7,676 | $ 9,276 | ||
Gross charge offs | ||||||
2023 | (56) | |||||
2022 | 0 | |||||
2021 | (3) | |||||
2020 | (4) | |||||
2019 | 0 | |||||
Prior | (21) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Charge-offs | (65) | (9) | (84) | (66) | ||
Current period recoveries | ||||||
2023 | 11 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 0 | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Recoveries | 4 | $ 10 | 11 | $ 14 | ||
Net charge offs | ||||||
2023 | (45) | |||||
2022 | 0 | |||||
2021 | (3) | |||||
2020 | (4) | |||||
2019 | 0 | |||||
Prior | (21) | |||||
Revolving Loans Amortized Cost Basis | 0 | |||||
Net loans (charged off) recovered | (73) | |||||
Consumer portfolio | Consumer | Performing Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 1,238 | 1,238 | ||||
2022 | 980 | 980 | ||||
2021 | 877 | 877 | ||||
2020 | 365 | 365 | ||||
2019 | 287 | 287 | ||||
Prior | 437 | 437 | ||||
Revolving Loans Amortized Cost Basis | 3,551 | 3,551 | ||||
Loans, net of unearned interest | 7,735 | 7,735 | ||||
Consumer portfolio | Consumer | Nonperforming Financial Instruments | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | 0 | ||||
Loans, net of unearned interest | $ 0 | $ 0 | ||||
Consumer portfolio | Consumer | Pass | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | 7,676 | |||||
Consumer portfolio | Consumer | Special Mention | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | 0 | |||||
Consumer portfolio | Consumer | Substandard | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Credit Losses - Loans - ACL Loans by Portfolio Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 19, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | $ 31,265 | $ 15,147 | $ 18,957 | $ 14,597 | |
Purchase credit deteriorated loans | 336 | 336 | |||
Charge-offs | (174) | (9) | (324) | (66) | |
Recoveries | 4 | 13 | 41 | 120 | |
Net loans (charged off) recovered | (170) | (283) | |||
Provisions | 1,157 | 1,725 | 1,647 | 2,225 | |
Allowance for loan losses, ending balance | 32,588 | 16,876 | 32,588 | 16,876 | |
Brunswick Bancorp Acquisition | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Purchase credit deteriorated loans | $ 355 | ||||
Provisions | 2,000 | 2,000 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 11,931 | ||||
Commercial portfolio | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 13,312 | 9,991 | 13,142 | 9,415 | |
Purchase credit deteriorated loans | 314 | 314 | |||
Charge-offs | 0 | 0 | (16) | 0 | |
Recoveries | 0 | 0 | 0 | 65 | |
Net loans (charged off) recovered | 0 | (16) | |||
Provisions | 571 | 2,000 | 469 | 2,511 | |
Allowance for loan losses, ending balance | 14,197 | 11,991 | 14,197 | 11,991 | |
Commercial portfolio | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 288 | ||||
Commercial portfolio | Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 11,269 | 3,811 | 4,593 | 3,439 | |
Purchase credit deteriorated loans | 5 | 5 | |||
Charge-offs | (109) | 0 | (220) | 0 | |
Recoveries | 0 | 0 | 0 | 13 | |
Net loans (charged off) recovered | (109) | (220) | |||
Provisions | 238 | (140) | 425 | 219 | |
Allowance for loan losses, ending balance | 11,403 | 3,671 | 11,403 | 3,671 | |
Commercial portfolio | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 6,600 | ||||
Commercial portfolio | Construction | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 3,631 | 41 | 0 | 38 | |
Purchase credit deteriorated loans | 13 | 13 | |||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 24 | |
Net loans (charged off) recovered | 0 | 0 | |||
Provisions | 23 | 5 | 453 | (16) | |
Allowance for loan losses, ending balance | 3,667 | 46 | 3,667 | 46 | |
Commercial portfolio | Construction | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 3,201 | ||||
Consumer portfolio | Residential mortgage | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 2,874 | 1,045 | 1,319 | 1,019 | |
Purchase credit deteriorated loans | 4 | 4 | |||
Charge-offs | 0 | 0 | (4) | 0 | |
Recoveries | 0 | 3 | 30 | 4 | |
Net loans (charged off) recovered | 0 | 26 | |||
Provisions | 267 | 95 | 234 | 120 | |
Allowance for loan losses, ending balance | 3,145 | 1,143 | 3,145 | 1,143 | |
Consumer portfolio | Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 1,562 | ||||
Consumer portfolio | Consumer | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 179 | 2 | 29 | 2 | |
Purchase credit deteriorated loans | 0 | 0 | |||
Charge-offs | (65) | (9) | (84) | (66) | |
Recoveries | 4 | 10 | 11 | 14 | |
Net loans (charged off) recovered | (61) | (73) | |||
Provisions | 58 | (1) | 66 | 52 | |
Allowance for loan losses, ending balance | 176 | 2 | 176 | 2 | |
Consumer portfolio | Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 154 | ||||
Unallocated | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | 257 | (126) | 684 | ||
Purchase credit deteriorated loans | 0 | ||||
Charge-offs | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Net loans (charged off) recovered | 0 | ||||
Provisions | (234) | 0 | (661) | ||
Allowance for loan losses, ending balance | $ 0 | $ 23 | 0 | $ 23 | |
Unallocated | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan losses, beginning balance | $ 126 |
Loans and Allowance for Credit Losses - Loans - ACL for Loans and Amortized Cost Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | $ 31,617 | $ 15,866 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 971 | 1,010 | ||||
Allowance for loan losses | 32,588 | $ 31,265 | $ 18,957 | 16,876 | $ 15,147 | $ 14,597 |
Loans receivable: ending balance, collectively evaluated for impairment | 4,018,664 | 3,180,033 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 15,846 | 4,026 | ||||
Loans, net of unearned interest | 4,034,510 | 3,514,119 | 3,171,307 | |||
Commercial portfolio | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 13,945 | 11,099 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 252 | 892 | ||||
Allowance for loan losses | 14,197 | 13,312 | 13,142 | 11,991 | 9,991 | 9,415 |
Loans receivable: ending balance, collectively evaluated for impairment | 2,136,727 | 1,825,944 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 8,545 | 2,106 | ||||
Loans, net of unearned interest | 2,145,272 | 2,052,934 | 1,821,729 | |||
Commercial portfolio | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 10,686 | 3,553 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 717 | 118 | ||||
Allowance for loan losses | 11,403 | 11,269 | 4,593 | 3,671 | 3,811 | 3,439 |
Loans receivable: ending balance, collectively evaluated for impairment | 634,386 | 549,881 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 1,543 | 507 | ||||
Loans, net of unearned interest | 635,929 | 596,042 | 549,374 | |||
Commercial portfolio | Construction | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 3,667 | 46 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 3,667 | 3,631 | 0 | 46 | 41 | 38 |
Loans receivable: ending balance, collectively evaluated for impairment | 513,142 | 376,117 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 2,256 | 0 | ||||
Loans, net of unearned interest | 515,398 | 441,246 | 374,896 | |||
Consumer portfolio | Residential mortgage | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 3,143 | 1,143 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 2 | 0 | ||||
Allowance for loan losses | 3,145 | 2,874 | 1,319 | 1,143 | 1,045 | 1,019 |
Loans receivable: ending balance, collectively evaluated for impairment | 726,674 | 418,815 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 3,502 | 1,413 | ||||
Loans, net of unearned interest | 730,176 | 416,221 | 416,032 | |||
Consumer portfolio | Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 176 | 2 | ||||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 176 | $ 179 | 29 | $ 2 | 2 | $ 2 |
Loans receivable: ending balance, collectively evaluated for impairment | 7,735 | 9,276 | ||||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 0 | ||||
Loans, net of unearned interest | $ 7,735 | $ 7,676 | $ 9,276 |
Loans and Allowance for Credit Losses - Loans - Allowance And Recorded Investment In Financing Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | $ 31,265 | $ 15,147 | $ 18,957 | $ 14,597 | ||
Charge-offs | (174) | (9) | (324) | (66) | ||
Recoveries | 4 | 13 | 41 | 120 | ||
Provisions | 1,157 | 1,725 | 1,647 | 2,225 | ||
Allowance for loan losses, ending balance | 32,588 | 16,876 | 32,588 | 16,876 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 971 | 1,010 | 971 | 1,010 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 31,617 | 15,866 | 31,617 | 15,866 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 4,018,664 | 4,018,664 | $ 3,180,033 | |||
Loans receivable: ending balance, individually evaluated for impairment | 15,846 | 15,846 | 4,026 | |||
Loans, net of unearned interest | 4,034,510 | 4,034,510 | $ 3,514,119 | 3,171,307 | ||
Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | 4,700 | |||||
Commercial portfolio | Commercial real estate | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 13,312 | 9,991 | 13,142 | 9,415 | ||
Charge-offs | 0 | 0 | (16) | 0 | ||
Recoveries | 0 | 0 | 0 | 65 | ||
Provisions | 571 | 2,000 | 469 | 2,511 | ||
Allowance for loan losses, ending balance | 14,197 | 11,991 | 14,197 | 11,991 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 252 | 892 | 252 | 892 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 13,945 | 11,099 | 13,945 | 11,099 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 2,136,727 | 2,136,727 | 1,825,944 | |||
Loans receivable: ending balance, individually evaluated for impairment | 8,545 | 8,545 | 2,106 | |||
Loans, net of unearned interest | 2,145,272 | 2,145,272 | 2,052,934 | 1,821,729 | ||
Commercial portfolio | Commercial real estate | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | 2,537 | 2,109 | ||||
Commercial portfolio | Commercial and industrial | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 11,269 | 3,811 | 4,593 | 3,439 | ||
Charge-offs | (109) | 0 | (220) | 0 | ||
Recoveries | 0 | 0 | 0 | 13 | ||
Provisions | 238 | (140) | 425 | 219 | ||
Allowance for loan losses, ending balance | 11,403 | 3,671 | 11,403 | 3,671 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 717 | 118 | 717 | 118 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 10,686 | 3,553 | 10,686 | 3,553 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 634,386 | 634,386 | 549,881 | |||
Loans receivable: ending balance, individually evaluated for impairment | 1,543 | 1,543 | 507 | |||
Loans, net of unearned interest | 635,929 | 635,929 | 596,042 | 549,374 | ||
Commercial portfolio | Commercial and industrial | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | 0 | 0 | ||||
Commercial portfolio | Construction | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 3,631 | 41 | 0 | 38 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 24 | ||
Provisions | 23 | 5 | 453 | (16) | ||
Allowance for loan losses, ending balance | 3,667 | 46 | 3,667 | 46 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 3,667 | 46 | 3,667 | 46 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 513,142 | 513,142 | 376,117 | |||
Loans receivable: ending balance, individually evaluated for impairment | 2,256 | 2,256 | 0 | |||
Loans, net of unearned interest | 515,398 | 515,398 | 441,246 | 374,896 | ||
Commercial portfolio | Construction | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | 0 | 1,221 | ||||
Consumer portfolio | Residential mortgage | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 2,874 | 1,045 | 1,319 | 1,019 | ||
Charge-offs | 0 | 0 | (4) | 0 | ||
Recoveries | 0 | 3 | 30 | 4 | ||
Provisions | 267 | 95 | 234 | 120 | ||
Allowance for loan losses, ending balance | 3,145 | 1,143 | 3,145 | 1,143 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 2 | 0 | 2 | 0 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 3,143 | 1,143 | 3,143 | 1,143 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 726,674 | 726,674 | 418,815 | |||
Loans receivable: ending balance, individually evaluated for impairment | 3,502 | 3,502 | 1,413 | |||
Loans, net of unearned interest | 730,176 | 730,176 | 416,221 | 416,032 | ||
Consumer portfolio | Residential mortgage | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | 1,140 | 1,370 | ||||
Consumer portfolio | Consumer | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 179 | 2 | 29 | 2 | ||
Charge-offs | (65) | (9) | (84) | (66) | ||
Recoveries | 4 | 10 | 11 | 14 | ||
Provisions | 58 | (1) | 66 | 52 | ||
Allowance for loan losses, ending balance | 176 | 2 | 176 | 2 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | ||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 176 | 2 | 176 | 2 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 7,735 | 7,735 | 9,276 | |||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 0 | 0 | |||
Loans, net of unearned interest | 7,735 | 7,735 | 7,676 | 9,276 | ||
Consumer portfolio | Consumer | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | $ 0 | 0 | ||||
Unallocated | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | 257 | (126) | 684 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Provisions | (234) | 0 | (661) | |||
Allowance for loan losses, ending balance | $ 0 | 23 | $ 0 | 23 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | $ 23 | $ 23 | ||||
Loans receivable: ending balance, collectively evaluated for impairment | 0 | |||||
Loans receivable: ending balance, individually evaluated for impairment | 0 | |||||
Loans, net of unearned interest | 0 | |||||
Unallocated | Acquired with credit deterioration | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Credit Losses - Loans - Internal Risk Ratings (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | $ 4,034,510 | $ 3,514,119 | $ 3,171,307 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 3,236,041 | 3,456,553 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 22,591 | 21,897 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 37,967 | 35,669 | |
Commercial portfolio | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 2,145,272 | 2,052,934 | 1,821,729 |
Commercial portfolio | Commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 2,107,493 | 2,018,088 | |
Commercial portfolio | Commercial real estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 13,246 | 12,325 | |
Commercial portfolio | Commercial real estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 24,533 | 22,521 | |
Commercial portfolio | Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 635,929 | 596,042 | 549,374 |
Commercial portfolio | Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 617,098 | 582,540 | |
Commercial portfolio | Commercial and industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 7,653 | 4,212 | |
Commercial portfolio | Commercial and industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 11,178 | 9,290 | |
Commercial portfolio | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 515,398 | 441,246 | 374,896 |
Commercial portfolio | Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 511,450 | 438,990 | |
Commercial portfolio | Construction | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 1,692 | 2,256 | |
Commercial portfolio | Construction | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 2,256 | 0 | |
Consumer portfolio | Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 730,176 | 416,221 | 416,032 |
Consumer portfolio | Residential mortgage | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 409,259 | ||
Consumer portfolio | Residential mortgage | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 3,104 | ||
Consumer portfolio | Residential mortgage | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 3,858 | ||
Consumer portfolio | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | $ 7,735 | 7,676 | $ 9,276 |
Consumer portfolio | Consumer | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 7,676 | ||
Consumer portfolio | Consumer | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | 0 | ||
Consumer portfolio | Consumer | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Credit Losses - Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 150 | $ 381 |
% of Total Class of Financing Receivable | 0.02% | 0.01% |
Interest Only | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 0 | $ 51 |
Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | 150 | 150 |
Combination: Interest Only and Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | 0 | 180 |
Commercial portfolio | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 150 | $ 150 |
% of Total Class of Financing Receivable | 0.02% | 0.02% |
Commercial portfolio | Commercial and industrial | Interest Only | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 0 | $ 0 |
Commercial portfolio | Commercial and industrial | Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | 150 | 150 |
Commercial portfolio | Commercial and industrial | Combination: Interest Only and Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | 0 | $ 0 |
Commercial portfolio | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 231 | |
% of Total Class of Financing Receivable | 0.01% | |
Commercial portfolio | Commercial real estate | Interest Only | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 51 | |
Commercial portfolio | Commercial real estate | Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | 0 | |
Commercial portfolio | Commercial real estate | Combination: Interest Only and Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable, excluding accrued interest, modified period | $ 180 |
Derivative Financial Instruments - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Interest Rate Contract | |
Derivative [Line Items] | |
Cash flow hedge to be reclassified within 12 months | $ 2.9 |
Derivative Financial Instruments - Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Mortgage Banking Derivative Financial Instruments | Interest Rate Lock Commitments | Positive | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,285 | $ 274 |
Asset (Liability) Fair Value | 14 | 3 |
Mortgage Banking Derivative Financial Instruments | Interest Rate Lock Commitments | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 4,248 | 5,252 |
Asset (Liability) Fair Value | (22) | (40) |
Mortgage Banking Derivative Financial Instruments | Forward Commitments | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 1,762 | 4,750 |
Asset (Liability) Fair Value | 6 | 43 |
Mortgage Banking Derivative Financial Instruments | Forward Commitments | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 3,442 | 0 |
Asset (Liability) Fair Value | (15) | 0 |
Interest Rate Swap with Customers | Commercial Loan | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 36,644 | 16,650 |
Asset (Liability) Fair Value | 251 | 164 |
Interest Rate Swap with Customers | Commercial Loan | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 106,434 | 107,145 |
Asset (Liability) Fair Value | (11,431) | (11,533) |
Interest Rate Swap with Counterparties | Commercial Loan | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 106,434 | 107,145 |
Asset (Liability) Fair Value | 11,431 | 11,533 |
Interest Rate Swap with Counterparties | Commercial Loan | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 36,644 | 16,650 |
Asset (Liability) Fair Value | (251) | (164) |
Interest Rate Swaps Used In Cash Flow Hedges | Cash Flow Hedging | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 190,000 | 0 |
Asset (Liability) Fair Value | 3,589 | 0 |
Interest Rate Swaps Used In Cash Flow Hedges | Cash Flow Hedging | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 0 |
Asset (Liability) Fair Value | $ 0 | $ 0 |
Derivative Financial Instruments - Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income (Details) - Mortgage Banking Derivative Financial Instruments - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Derivative [Line Items] | ||||
Net gains or losses recognized within other noninterest income | $ 128 | $ 538 | $ 148 | $ 1,104 |
Interest Rate Lock Commitments | ||||
Derivative [Line Items] | ||||
Net gains or losses recognized within other noninterest income | (42) | 214 | 29 | 27 |
Forward Commitments | ||||
Derivative [Line Items] | ||||
Net gains or losses recognized within other noninterest income | $ 170 | $ 324 | $ 119 | $ 1,077 |
Derivative Financial Instruments - Effect of Fair Value and Cash Flow Hedge Accounting on AOCI (Details) - Interest Rate Contract - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Derivative [Line Items] | ||
Amount of Gain Recognized in OCI on Derivative | $ 3,591 | $ 3,428 |
Amount of Gain Recognized in OCI Included Component | 3,591 | 3,428 |
Amount of Gain Recognized in OCI Excluded Component | 0 | 0 |
Amount of Gain Recognized in OCI on Derivative | 0 | 0 |
Amount of Gain (Loss) Reclassified from AOCI into Expense Included Component | 0 | 0 |
Amount of Gain (Loss) Reclassified from AOCI into Expense Excluded Component | $ 0 | $ 0 |
Derivative Financial Instruments - Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative [Line Items] | ||
Net Amounts Presented in the Consolidated Balance Sheets | $ 15,291 | |
Financial instruments | 0 | $ 0 |
Cash collateral | 1,600 | 1,600 |
Net Amounts | 1,600 | 1,600 |
Derivative assets | Commercial Loan | ||
Derivative [Line Items] | ||
Gross amounts recognized | 11,682 | 11,697 |
Gross amounts offset | 11,682 | 11,697 |
Net Amounts Presented in the Consolidated Balance Sheets | $ 0 | $ 0 |
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 510,793 | $ 494,161 | $ 512,099 | $ 490,076 |
OCI before reclassifications | (431) | (4,812) | 1,423 | (9,915) |
Amounts reclassified from AOCI | 0 | (1) | (12) | (2) |
Balance | 525,888 | 495,835 | 525,888 | 495,835 |
Unrealized Loss on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (17,350) | (5,485) | (19,327) | (255) |
OCI before reclassifications | (3,261) | (4,812) | (1,284) | (10,042) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Balance | (20,611) | (10,297) | (20,611) | (10,297) |
Unrealized Holding Losses on Interest Rate Derivatives used in Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (128) | 0 | 0 | 0 |
OCI before reclassifications | 2,837 | 0 | 2,709 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Balance | 2,709 | 0 | 2,709 | 0 |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 104 | 539 | 111 | 413 |
OCI before reclassifications | (7) | 0 | (2) | 127 |
Amounts reclassified from AOCI | 0 | (1) | (12) | (2) |
Balance | $ 97 | $ 538 | $ 97 | $ 538 |
Fair Value Measurement - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | $ 228,774 | $ 237,878 |
Equity securities | 433 | 430 |
Loans held for sale | 7,258 | 2,475 |
Derivative assets | 15,291 | |
Derivative assets | 11,703 | |
Total | 251,756 | 252,486 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Equity securities | 433 | 430 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative assets | 0 | |
Total | 433 | 430 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 228,774 | 237,878 |
Equity securities | 0 | 0 |
Loans held for sale | 7,258 | 2,475 |
Derivative assets | 15,291 | 11,743 |
Derivative assets | 11,703 | |
Total | 251,323 | 252,056 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative assets | 0 | |
Total | 0 | 0 |
U.S. Treasury and U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 34,927 | 34,914 |
U.S. Treasury and U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
U.S. Treasury and U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 34,927 | 34,914 |
U.S. Treasury and U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Mortgage-backed U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 158,700 | 166,915 |
Mortgage-backed U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Mortgage-backed U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 158,700 | 166,915 |
Mortgage-backed U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
State and political subdivision obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 3,561 | 3,539 |
State and political subdivision obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
State and political subdivision obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 3,561 | 3,539 |
State and political subdivision obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 31,586 | 32,510 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 31,586 | 32,510 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | $ 0 | $ 0 |
Fair Value Measurement - Fair Value Measurements, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Individually evaluated loans, net of ACL | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 14,875 | $ 4,022 |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 489 | $ 43 |
Fair Value Measurement - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial instruments - assets | ||
AFS, at fair value | $ 228,774 | $ 237,878 |
Estimated Fair Value | 355,789 | 348,505 |
Loans held for sale | 7,258 | 2,475 |
Derivative assets | 15,291 | |
Level 1 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 93,875 | 60,881 |
AFS, at fair value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Equity securities | 433 | 430 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Restricted investment in bank stocks | 11,646 | 8,315 |
Accrued interest receivable | 19,626 | 18,405 |
Derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 11,115 | 2,303 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
AFS, at fair value | 228,774 | 237,878 |
Estimated Fair Value | 355,789 | 348,505 |
Equity securities | 0 | 0 |
Loans held for sale | 7,258 | 2,475 |
Net loans | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 15,291 | 11,743 |
Financial instruments - liabilities | ||
Deposits | 4,273,395 | 3,761,260 |
Short-term borrowings | 112,442 | 102,647 |
Long-term debt | 54,014 | 1,069 |
Subordinated debt | 46,152 | 55,917 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 11,719 | 11,737 |
Level 3 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
AFS, at fair value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 3,982,704 | 3,439,948 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Carrying Amount | ||
Financial instruments - assets | ||
Cash and cash equivalents | 93,875 | 60,881 |
AFS, at fair value | 228,774 | 237,878 |
Estimated Fair Value | 404,831 | 399,494 |
Equity securities | 433 | 430 |
Loans held for sale | 7,258 | 2,475 |
Net loans | 4,001,922 | 3,495,162 |
Restricted investment in bank stocks | 11,646 | 8,315 |
Accrued interest receivable | 19,626 | 18,405 |
Derivative assets | 15,291 | 11,743 |
Financial instruments - liabilities | ||
Deposits | 4,286,686 | 3,778,331 |
Short-term borrowings | 112,442 | 102,647 |
Long-term debt | 55,738 | 1,119 |
Subordinated debt | 46,648 | 56,941 |
Accrued interest payable | 11,115 | 2,303 |
Derivative liabilities | 11,719 | 11,737 |
Estimated Fair Value | ||
Financial instruments - assets | ||
Cash and cash equivalents | 93,875 | 60,881 |
AFS, at fair value | 228,774 | 237,878 |
Estimated Fair Value | 355,789 | 348,505 |
Equity securities | 433 | 430 |
Loans held for sale | 7,258 | 2,475 |
Net loans | 3,982,704 | 3,439,948 |
Restricted investment in bank stocks | 11,646 | 8,315 |
Accrued interest receivable | 19,626 | 18,405 |
Derivative assets | 15,291 | 11,743 |
Financial instruments - liabilities | ||
Deposits | 4,273,395 | 3,761,260 |
Short-term borrowings | 112,442 | 102,647 |
Long-term debt | 54,014 | 1,069 |
Subordinated debt | 46,152 | 55,917 |
Accrued interest payable | 11,115 | 2,303 |
Derivative liabilities | $ 11,719 | $ 11,737 |
Commitments and Contingencies - Narrative (Details) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023
USD ($)
Building
Apartment
Shop
|
Dec. 31, 2022
USD ($)
|
|
Cumberland County, Pennsylvania | ||
Commitments, Contingencies and Guarantees [Line Items] | ||
Number of apartments under the project | Apartment | 39 | |
Limited partner capital contribution | $ 10,800 | |
Total LIHTCs amount awarded for the project | 1,200 | |
Total anticipated LIHTCs amount under the housing project | $ 12,000 | |
Project investment amortization period | 10 years | |
Riverview | ||
Commitments, Contingencies and Guarantees [Line Items] | ||
Number of apartments under the project | Apartment | 17 | |
Limited partner capital contribution | $ 4,400 | |
Total LIHTCs amount awarded for the project | 484 | |
Total anticipated LIHTCs amount under the housing project | $ 4,800 | |
Project investment amortization period | 10 years | |
Number of buildings | Building | 3 | |
Number of shops under the project | Shop | 2 | |
Principal amount of construction loan | $ 3,500 | |
Debt instrument, interest rate, effective percentage | 5.50% | |
Term of construction loan | 24 months | |
Financial Standby Letters of Credit | ||
Commitments, Contingencies and Guarantees [Line Items] | ||
Commitments to extend credit | $ 55,600 | $ 57,200 |
Commitments and Contingencies - Changes in Allowance for Credit Loss on OBS Exposure (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | $ 3,502 | $ 85 |
PCL - OBS exposure | 289 | 340 |
Ending balance | $ 3,791 | 3,502 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | $ 3,077 |
Debt - Narrative (Details) - USD ($) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Debt Instrument [Line Items] | ||
Short term borrowings | $ 112,442,000 | $ 102,647,000 |
Maturity of federal funds purchased from correspondent banks | one business day | |
Real estate secured loans | $ 2,300,000,000 | |
Current borrowing available | 1,300,000,000 | |
Maximum borrowing capacity | 1,600,000,000 | |
FHLB | ||
Debt Instrument [Line Items] | ||
Letter of credit outstanding, amount | 175,000,000 | 189,000,000 |
Other Correspondent Banks | ||
Debt Instrument [Line Items] | ||
Outstanding drawings | 0 | $ 0 |
Line of credit facility, remaining borrowing capacity | $ 35,000,000 |
Debt - Long-term Debt Outstanding by Due Date (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total FHLB fixed rate instruments | $ 55,738 | $ 1,119 |
Lease obligations included in long-term debt | 3,244 | 3,290 |
Total long-term debt | 58,982 | 4,409 |
Due in January 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 10,000 | $ 0 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 1.10% | 1.10% |
Due in March 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 25,000 | $ 0 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 5.60% | 5.60% |
Due in February 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 20,000 | $ 0 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.51% | 4.51% |
Due in August 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 711 | $ 1,088 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.80% | 4.80% |
Due in February 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 27 | $ 31 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 6.71% | 6.71% |
Subordinated Debt and Trust Preferred Securities (Narrative) (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Nov. 30, 2021 |
Dec. 22, 2020 |
Mar. 20, 2020 |
Dec. 19, 2017 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Subordinated debt | $ 46,648 | $ 56,941 | ||||
Subordinated Debt | Subordinated Notes Due 2028 | ||||||
Subordinated debt issuance | $ 10,000 | |||||
Subordinated Debt | Subordinated Notes Due December 2030 | ||||||
Subordinated debt issuance | $ 12,200 | |||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||
Interest rate period | 5 years | |||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||
Redemption price, percentage | 100.00% | |||||
Subordinated Debt | Subordinated Notes Due December 2030 | Related Party | ||||||
Subordinated debt | 750 | 750 | ||||
Subordinated Debt | Subordinated Notes Due March 2030 | ||||||
Subordinated debt issuance | $ 6,900 | $ 15,000 | 8,100 | |||
Debt instrument, interest rate, effective percentage | 4.00% | |||||
Interest rate period | 5 years | |||||
Debt instrument, interest rate, effective percentage | 4.25% | |||||
Redemption price, percentage | 100.00% | |||||
Interest payment terms, semi-annually | 5 years | |||||
Subordinated Debt | Subordinated Notes Due March 2030 | Related Party | ||||||
Subordinated debt | $ 1,700 | $ 1,700 | ||||
Riverview Acquisition | Subordinated Debt | ||||||
Debt instrument, interest rate, effective percentage | 5.75% | |||||
Debt instrument, basis spread on variable rate | 5.63% | |||||
Subordinate debt assumed | $ 25,000 | |||||
Subordinated debt fair value premium | $ 2,300 |
Common Stock and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 19, 2020 |
|
Class of Stock [Line Items] | |||||
Stock repurchased during period (in shares) | 412,722 | 412,722 | |||
Stock repurchased at average price per share (in dollars per share) | $ 22.92 | $ 22.92 | |||
Number of antidilutive shares | 0 | 0 | |||
Employee | Minimum | |||||
Class of Stock [Line Items] | |||||
Restricted shares, vesting period | 1 year | ||||
Employee | Maximum | |||||
Class of Stock [Line Items] | |||||
Restricted shares, vesting period | 4 years | ||||
Director | |||||
Class of Stock [Line Items] | |||||
Restricted shares, vesting period | 12 months | ||||
Dividend Reinvestment Plan | |||||
Class of Stock [Line Items] | |||||
Shares authorized per plan (in shares) | 300,000,000 | 300,000,000 | |||
2023 Stock Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Aggregate shares granted (in shares) | 350,000 | ||||
Shares granted (in shares) | 217,514,000 | ||||
Granted shares unvested (in shares) | 94,192 | 94,192 | |||
Allocated share-based compensation expense | $ 252 | $ 289 | $ 501 | $ 457 | |
Treasury Stock Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount (in shares) | $ 15,000 | ||||
Stock repurchased during period (in shares) | 204,379 | ||||
Stock repurchased at average price per share (in dollars per share) | $ 22.41 | ||||
Stock repurchase program, remaining available repurchase amount | $ 5,500 | $ 5,500 |
Common Stock and Earnings Per Share - Schedule of Computing Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||||||
Net income | $ 4,836 | $ 11,227 | $ 12,252 | $ 11,354 | $ 16,063 | $ 23,606 |
Weighted average common shares outstanding (basic) | 16,233,473 | 15,934,083 | 16,060,789 | 15,945,997 | ||
Effect of dilutive unvested restricted stock grants (in shares) | 21,805 | 14,402 | 35,481 | 13,469 | ||
Weighted average common shares outstanding (diluted) | 16,255,278 | 15,948,485 | 16,096,270 | 15,959,466 | ||
Basic earnings per common share (In dollars per share) | $ 0.29 | $ 0.77 | $ 1.00 | $ 1.48 | ||
Diluted earnings per common share (in dollars per share) | $ 0.29 | $ 0.77 | $ 1.00 | $ 1.48 |
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